Faith & Finance

We like to think we make rational decisions with our money, but what if our emotions influence our financial choices far more than we realize?That’s one of behavioral economics' central findings: human psychology shapes financial decisions. While these discoveries have challenged traditional economic thinking, they reinforce what Scripture has taught for thousands of years: human wisdom is limited, our hearts can deceive us, and our emotions don't always lead us in the right direction.Mark Biller, Executive Editor and Senior Portfolio Manager at Sound Mind Investing (SMI), believes understanding these tendencies can help Christians become wiser, more disciplined investors.What Behavioral Economics Reveals About Human NatureFor decades, traditional economic theory largely assumed people make rational financial decisions based on available information and their own economic interests.But behavioral economists have shown that emotions, cognitive biases, and psychological tendencies often shape our decisions in ways that can undermine our financial well-being.While these findings have transformed modern economic thinking, they shouldn't surprise Christians familiar with Scripture. Consider what the Bible reveals about human nature:Our wisdom is flawed. 1 Corinthians 3:18–19 reminds us that human wisdom doesn't always align with God's wisdom. What seems reasonable from our limited perspective may not be wise at all.Our hearts can deceive us. Jeremiah 17:9 warns that the human heart is deceitful. We may believe we're making objective financial decisions when fear, pride, or greed actually shapes our motivations.Our emotions can overpower our intentions. In Romans 7:18, Paul acknowledges the struggle between knowing what is right and actually doing it. Investors experience a similar tension when they understand sound financial principles but struggle to follow them during market volatility.Our ability to predict the future is limited. James 4:13–14 cautions against assuming we know what tomorrow will bring. That principle matters especially in investing, where even the most experienced professionals cannot consistently predict market movements.Recognizing these limitations should encourage humility, not fear. We don't have to understand everything about the future to make wise financial decisions today. And according to Biller, there are practical ways to account for these human weaknesses when managing investments.Three Ways to Overcome Emotional InvestingAt Sound Mind Investing, Biller and his team encourage investors to recognize their behavioral tendencies and establish disciplined practices to counteract them. Here are three strategies they recommend.1. Establish Clear, Non-Emotional Selling GuidelinesOne of the most difficult investment decisions is knowing when to sell.Behavioral economists have identified two common tendencies that make selling particularly challenging.The first is the Endowment Effect, our tendency to value something more simply because we own it.An investor might become emotionally attached to a particular stock, especially after it has performed well, making it difficult to recognize when selling might be appropriate.The second is the Sunk Cost Effect, which makes it difficult to walk away from something we've already invested in.For example, someone holding a declining investment might refuse to sell because they're determined to recover their original investment, even when the investment's future prospects no longer justify holding it.Both tendencies can lead investors to make decisions based on emotional attachment rather than sound judgment.Establishing clear selling guidelines in advance helps reduce that temptation. Rather than deciding what to do in the middle of an emotional market environment, investors can follow a predetermined process.2. Exercise Restraint With Higher-Risk InvestmentsAnother common behavioral tendency is allowing recent market performance to influence how much risk we're willing to take.When markets rise, and aggressive investments perform well, investors may feel increasingly comfortable taking on more risk. But that confidence can disappear quickly when markets decline.Biller points to a behavioral tendency known as loss aversion, which describes how people generally experience the pain of financial losses more intensely than the pleasure of comparable gains.That emotional imbalance can make volatile investments especially difficult to hold through challenging markets.Even when a higher-risk strategy can produce attractive long-term returns, investors must consider whether they can emotionally withstand the downturns that may come along the way. That's why SMI encourages investors to limit exposure to more aggressive strategies, especially after periods of unusually strong performance.The goal isn't to eliminate risk. It's to ensure that the risk we're taking remains appropriate for our financial circumstances and long-term goals.3. Diversify Your Investment StrategiesDiversification is a familiar investing principle, but Biller emphasizes that it can also provide psychological benefits.Different investment strategies tend to perform better under different market conditions. By combining approaches that respond differently to market movements, investors may find it easier to remain disciplined through both rising and falling markets.Consider two common situations.An investor following an aggressive strategy may experience significant anxiety when markets decline. Meanwhile, someone using a conservative strategy may feel frustrated during a strong bull market because their investments aren't keeping pace.Both investors face emotional pressures that could tempt them to abandon their plans.A diversified approach can help moderate those pressures by reducing dependence on any single strategy.Diversification can't eliminate losses or guarantee returns, but it can make the investing experience more manageable and help investors maintain a long-term perspective.Investing Is Simple, But That Doesn't Make It EasyBiller often reminds investors that investing can be simple, but not easy.The basic principles of successful long-term investing aren't necessarily complicated. But applying those principles consistently requires patience, restraint, and emotional discipline.Markets will remain unpredictable. Investments will experience periods of growth and decline. And our natural tendencies toward fear, overconfidence, and comparison won't simply disappear.That's why a rules-based investment approach can be so valuable.Instead of constantly reacting to market headlines or deciding based on how we feel in the moment, we can establish a thoughtful investment process and follow it consistently.Doing so doesn't eliminate uncertainty, but it can reduce the temptation to make impulsive decisions that undermine long-term financial goals.Developing a Biblical Stewardship MindsetUltimately, investing isn't simply about accumulating as much wealth as possible. For Christians, investing is one aspect of a much larger responsibility: faithfully managing what God has entrusted to us.That perspective should shape not only the investments we choose but also the attitudes we bring to the process.A stewardship mindset encourages patience over impatience, humility over overconfidence, and contentment over constant comparison. It also reminds us that our financial security ultimately doesn't depend on our ability to anticipate every market move.We can make thoughtful decisions, exercise appropriate restraint, and prepare responsibly for the future while recognizing that the outcomes remain beyond our control.The goal isn't to become an investor who never experiences fear or uncertainty. It's to become a faithful steward who doesn't allow those emotions to dictate every financial decision.By recognizing our limitations and applying time-tested financial principles, we can approach investing with greater discipline and a healthier perspective on wealth.To learn more about rules-based investing strategies and biblical financial wisdom, visit SoundMindInvesting.org.On Today’s Program, Rob Answers Listener Questions:My wife is 68 and retired, and I’m 67 and still working. We have about $58,000 in retirement accounts and are considering a fixed index annuity. How does it work, and should we move our money into one or leave it where it is?I found a credit card account on my credit report that I never opened. What’s the simplest way to dispute it with TransUnion and protect myself?Resources Mentioned:Become a FaithFi PartnerSound Mind InvestingIdentityTheft.gov (Federal Trade Commission)Faithful Steward: FaithFi’s Quarterly MagazineFaithFi Field Guide: How Much Money is Enough? Our Ultimate Treasure: A 21-Day Journey to Faithful Stewardship by Rob WestWisdom Over Wealth: 12 Lessons from Ecclesiastes on MoneyLook At The Sparrows: A 21-Day Devotional on Financial Fear and AnxietyRich Toward God: A Study on the Parable of the Rich FoolFind a Certified Kingdom Advisor® (CKA)FaithFi App Remember, you can call in to ask your questions every weekday at (800) 525-7000. Faith & Finance is also available on Moody Radio Network and American Family Radio. You can also visit FaithFi.com to connect with our online community and partner with us as we help more people live as faithful stewards of God’s resources. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

What if debt isn't just a financial issue, but a discipleship one?We often view borrowing through a financial lens, focusing on interest rates, monthly payments, and repayment timelines. But Scripture invites us to consider something deeper. Debt can shape our freedom, influence our generosity, and affect our ability to respond to opportunities God places before us.Borrowing is common in modern life, but understanding its spiritual implications can help us make wiser financial decisions.The Biblical Perspective on DebtCredit cards, student loans, mortgages, and business financing are familiar financial tools. While Scripture doesn't identify borrowing itself as a sin, it consistently warns about the obligations debt creates.Proverbs 22:7 reminds us, "The rich rules over the poor, and the borrower is the slave of the lender."In the ancient world, this wasn't merely a metaphor. Those unable to repay their debts could sometimes be forced into servitude. While modern lending generally operates differently, the underlying principle remains: Debt creates obligations that can limit our freedom and influence our decisions.When we borrow, we're committing a portion of our future income to something we've purchased or financed today. Those commitments can affect more than our monthly budgets. They can also limit our ability to give generously, serve others, or respond to unexpected opportunities.That's why debt deserves more than a financial evaluation. It deserves a spiritual one.When Debt Becomes a Discipleship ConcernImagine having an opportunity to support a ministry, help a family in need, or serve in a meaningful way, only to discover that your financial obligations leave little room to respond.That's the deeper concern with excessive debt. It can reduce our financial flexibility and make it harder to act on the things we value most.Paul writes in Romans 13:8, "Owe no one anything, except to love each other, for the one who loves another has fulfilled the law."This passage shouldn't be interpreted as an absolute prohibition against borrowing, but it reminds us to take our obligations seriously. Our financial commitments should never distract us from our greater responsibility to love and serve others.Of course, this doesn't mean all borrowing is unwise. A manageable mortgage or a carefully considered business loan may be entirely appropriate within a thoughtful financial plan. But Scripture invites us to ask a better question than simply, "Can I afford the payments?" We should also ask, "Will this financial decision support my ability to love and serve others, or will it unnecessarily limit that freedom?"As Paul reminds us in 1 Corinthians 10:23, "All things are lawful," but not all things are helpful. "All things are lawful," but not all things build up.Sometimes our borrowing reflects genuine needs. Other times, it may reveal impatience, comparison, or pressure to maintain a certain standard of living. Examining our motivations helps us recognize when debt serves a legitimate purpose and when it may shape our priorities in unhealthy ways.Moving From Debt Toward Financial FreedomWhat if you're already carrying significant debt?First, don't despair. The gospel reminds us that our relationship with God isn't defined by our financial circumstances or past mistakes.When Jesus died on the cross, He declared, "It is finished" (John 19:30). The Greek word tetelestai means "completed." It also provides a powerful picture of a debt fully settled.Through His death and resurrection, Jesus accomplished what we could never accomplish for ourselves. We can't repay our debt of sin through our own efforts. Salvation is a gift of grace we receive through faith in Christ. That truth should shape how we approach our financial obligations, too.We don't pursue financial freedom to earn God's approval. We pursue wise stewardship out of gratitude for His grace and a desire to use what He's entrusted to us faithfully.Psalm 37:21 reminds us, "The wicked borrows but does not pay back, but the righteous is generous and gives."Repaying what we owe is an important part of honoring our commitments. But our goal shouldn't simply be to eliminate debt as quickly as possible, regardless of the consequences.Instead, we should ask, "What's my next faithful step?"That might begin with an honest assessment of your financial obligations, including how they're affecting your ability to provide for your family, give generously, and serve others.From there, consider creating a spending plan, developing a realistic debt-repayment strategy, and building financial margin to prepare for future needs. Progress may take time, but each faithful step can help create greater financial freedom.Financial Freedom Is About Availability, Not LegalismThe ultimate goal of becoming debt-free isn't simply to reach a particular number on a balance sheet. It's to cultivate the freedom to live generously and respond faithfully to the opportunities before us.Consider Isaiah's response when he heard the Lord's call: "Here I am! Send me" (Isaiah 6:8). While Isaiah's calling was unique, his willingness to respond offers a beautiful picture of availability to God.Our financial decisions can help create room for that same willing posture. When unnecessary obligations don't overwhelm our resources, we may find ourselves better positioned to meet needs, practice generosity, and serve where God has placed us.Freedom from unnecessary debt isn't about legalism. It's about availability.So, wherever you are financially, start with one faithful step. Seek wisdom. Honor your commitments. Build margin where possible. And remember that God's grace is sufficient even when progress feels slow.The goal isn't financial perfection. It's faithful stewardship that leaves us increasingly free to love God and others.Discover Your Ultimate TreasureFinancial freedom is just one part of a much bigger conversation about faithful stewardship. In my devotional, Our Ultimate Treasure: A 21-Day Journey to Faithful Stewardship, we explore what Scripture teaches about money, generosity, contentment, and finding our ultimate satisfaction in Christ.You can purchase your copy at FaithFi.com/Shop. And if you'd like to walk through the devotional with your church or small group, discounted pricing is available for bulk orders.On Today’s Program, Rob Answers Listener Questions:I’m 69 and considering a $25,000 burial insurance policy that costs $149 a month with fixed premiums. Is that reasonable, or should I compare other options?I’m a single mom with limited income and credit card debt. I give regularly but not 10%. How can I become more generous without neglecting my financial obligations?My wife and I want to buy a property but have little savings. Can I use money from my retirement accounts or annuity to help with the purchase, and what should I consider before rolling over an old retirement plan?My father deeded property to me and ‘the heirs of my body.’ Does that mean it would automatically pass to my son, or do I still need a will or trust?Resources Mentioned:Become a FaithFi PartnerChristian Credit CounselorsFaithful Steward: FaithFi’s Quarterly MagazineFaithFi Field Guide: How Much Money is Enough? Our Ultimate Treasure: A 21-Day Journey to Faithful Stewardship by Rob WestWisdom Over Wealth: 12 Lessons from Ecclesiastes on MoneyLook At The Sparrows: A 21-Day Devotional on Financial Fear and AnxietyRich Toward God: A Study on the Parable of the Rich FoolFind a Certified Kingdom Advisor® (CKA)FaithFi App Remember, you can call in to ask your questions every weekday at (800) 525-7000. Faith & Finance is also available on Moody Radio Network and American Family Radio. You can also visit FaithFi.com to connect with our online community and partner with us as we help more people live as faithful stewards of God’s resources. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

A job can be more than a paycheck. It can provide dignity, create opportunities, and open doors for meaningful change in someone's life.For April Tam Smith, that belief inspired an unconventional approach to generosity: creating a restaurant that serves great food while giving people who need it most a second chance.April and her husband, Graham, are co-founders of P.S. Kitchen, a nonprofit restaurant in New York City's Times Square. Alongside a group of like-minded partners, they've built a business that combines hospitality, employment opportunities, and charitable giving.April joined the show today to share how the restaurant began and what she's learned about using business as a vehicle for generosity.A Vision for Generosity Beyond MoneyThe inspiration for P.S. Kitchen began long before the restaurant opened its doors.Early in their marriage, April and Graham spent part of their honeymoon in Haiti, volunteering with organizations that provided hearing aids and other health services to people in need.While that experience was meaningful, something else caught April's attention: the transformative power of employment. She remembers watching people walk into an industrial park in Haiti and noticing the dignity and purpose that came from having meaningful work.That experience planted a seed. What if generosity could involve more than donating money? What if it could also create opportunities for people to earn a living, provide for their families, and build a better future?April became increasingly interested in social businesses that address social problems through sustainable business models. The idea was simple but powerful: A business could generate revenue while also creating opportunities for people and communities to thrive.That vision eventually became P.S. Kitchen.A Restaurant With a Greater PurposeWhen April began developing the restaurant, she had little experience in the food industry. She had spent more than two decades working in equity derivatives, and she readily admits that she wasn't even particularly passionate about food. But she understood the kind of business she wanted to create.The goal wasn't simply to open a restaurant that donated a portion of its earnings to charity. April wanted generosity to shape every part of the operation, from the food it served to the people it employed and how it used its profits.P.S. Kitchen was designed as an inviting restaurant serving delicious, innovative, plant-based food. Customers could enjoy a great dining experience without necessarily knowing anything about the mission behind it. The restaurant's name reflects that approach.At the bottom of its menu, customers discover a series of additional messages: P.S., the restaurant employs people who may need a second chance. P.S., the menu is entirely plant-based. P.S., the profits are used to support charitable purposes.In other words, the mission is woven into the business rather than treated as an afterthought. April, Graham, and several friends initially funded the restaurant themselves. Over time, the ownership was donated entirely to a 501(c)(3) nonprofit organization.That's why April describes herself and Graham as co-founders rather than co-owners. They helped bring the restaurant into existence, but its purpose extends beyond their personal financial interests.Why Location MattersOpening a restaurant in Times Square might seem like an unusual choice for a nonprofit venture. But for April, the location was intentional.Throughout her finance career, she built relationships with colleagues and clients who shared her desire to make a difference. Some had accompanied her on service trips to Haiti and South Africa. Others had joined her in prison ministry or helped fund schools in the Democratic Republic of the Congo.Many wanted to become more involved in charitable work but struggled to find the time or opportunities.P.S. Kitchen offered a way to connect everyday activities with meaningful impact.Located on West 48th Street, the restaurant serves Manhattan's business community, Broadway visitors, and others exploring the city. Instead of requiring customers to participate in a separate charitable activity, the restaurant lets them support its mission simply by enjoying a meal.It's a reminder that generosity can sometimes be integrated into the activities we're already doing.Providing Second Chances Through EmploymentWhile the restaurant's food and charitable giving are important, one of its most distinctive features is its employment mission. April had spent years volunteering with organizations serving people affected by human trafficking, incarceration, and other difficult circumstances.Through those relationships, she repeatedly encountered people who wanted the same thing: an opportunity to work, provide for their families, and experience the dignity that comes with meaningful employment.Those conversations helped shape P.S. Kitchen's hiring practices.Rather than opening a restaurant and later searching for charitable organizations to partner with, April built the business with those organizations and the people they serve in mind.Since opening, P.S. Kitchen has employed more than 150 individuals referred through various partner organizations. The restaurant offers something financial assistance alone cannot always provide: an opportunity to participate, contribute, and move forward.For April, that reflects a more comprehensive understanding of generosity. Meeting an immediate financial need matters, but creating opportunities for lasting change can be equally significant.Building Something Bigger Than YourselfCreating a mission-driven business hasn't been easy. April describes the early years as a tremendous learning experience. Neither she nor Graham came from the restaurant industry, and they had to navigate the challenges of operating a business in one of the country's most competitive markets.The COVID-19 pandemic brought particularly difficult decisions. As restaurants throughout New York City closed, P.S. Kitchen faced enormous financial and operational pressures.At times, closing might have seemed like the most practical option. Yet April credits their community's generosity and encouragement with helping the restaurant continue. Friends, supporters, and partners came alongside them in ways they couldn't have anticipated when they first began.For others considering a mission-driven business, April emphasizes the importance of prayer, thoughtful preparation, and recognizing they don't have to do it alone. Her experience has taught her that a meaningful vision can invite others to participate, bringing their own resources, relationships, and abilities to the work.Stewardship Is About More Than MoneyThe story of P.S. Kitchen challenges us to broaden our understanding of generosity.We often think about giving primarily in financial terms. Financial giving is certainly an important expression of biblical stewardship, but God has entrusted us with far more than money.He's also given us time, relationships, skills, experience, and opportunities to serve others. 1 Peter 4:10 reminds believers, "As each has received a gift, use it to serve one another, as good stewards of God's varied grace."For some, that might mean starting a business that creates opportunities for others. For others, it might mean mentoring a coworker, helping someone develop professional skills, or using existing relationships to connect people with meaningful employment.Not every business needs to operate as a nonprofit to make a meaningful difference. Employers and employees alike can serve others through how they conduct their work.P.S. Kitchen offers one example of what can happen when people view their resources and opportunities through the lens of stewardship rather than personal gain alone.Ultimately, generosity isn't limited to what we're willing to give away. It can also shape what we're willing to create, share, and make possible for others.And sometimes, one of the most meaningful gifts we can offer someone isn't simply financial assistance. It's the opportunity to work, contribute, and experience the dignity that comes with being needed.On Today’s Program, Rob Answers Listener Questions:My employer is ending its pension plan, and I can roll it into my 403(b), take a lump sum, or choose an annuity. I’m 56 and still working. Should I take a lump sum to pay down debt or roll it into my 403(b)?Can I use a donor-advised fund to support a specific person going on my church’s short-term mission trip, or must the gift go to the church’s general missions fund? And can I tell the church I hope the gift supports a particular trip?Resources Mentioned:Become a FaithFi PartnerP.S. KitchenFaithful Steward: FaithFi’s Quarterly MagazineFaithFi Field Guide: How Much Money is Enough? Our Ultimate Treasure: A 21-Day Journey to Faithful Stewardship by Rob WestWisdom Over Wealth: 12 Lessons from Ecclesiastes on MoneyLook At The Sparrows: A 21-Day Devotional on Financial Fear and AnxietyRich Toward God: A Study on the Parable of the Rich FoolFind a Certified Kingdom Advisor® (CKA)FaithFi App Remember, you can call in to ask your questions every weekday at (800) 525-7000. Faith & Finance is also available on Moody Radio Network and American Family Radio. You can also visit FaithFi.com to connect with our online community and partner with us as we help more people live as faithful stewards of God’s resources. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

One of the simplest ways to avoid credit card debt is to save up for major purchases before you make them.When you plan ahead for expenses you know are coming, you can pay with money you already have instead of borrowing from tomorrow’s income. This simple approach can reduce financial stress, provide greater flexibility, and help you practice faithful stewardship.The key is preparing for tomorrow's expenses with today's resources.Saving for the Expected, Not Just the UnexpectedYou may be thinking, Isn't that what my emergency fund is for?Not exactly. Your emergency fund is designed to cover unexpected expenses, such as a transmission that suddenly fails, an unplanned medical bill, or a temporary loss of income.Saving for major purchases is different. It means intentionally setting aside money for larger expenses you can reasonably anticipate, like replacing a roof, buying your next vehicle, taking a vacation, or making a major home improvement.You'll sometimes hear this called a sinking fund, but whatever you call it, the principle is simple: Save a little at a time now so you don't have to borrow later.That takes patience. And in a culture built around instant gratification, patience can be a powerful financial habit. It can also be an important part of faithful stewardship.Proverbs 21:20 says, "Precious treasure and oil are in a wise man's dwelling, but a foolish man devours it."Wisdom doesn't require us to spend everything we have today. Sometimes it means looking ahead, preparing patiently, and allowing time to work in our favor.Start With a Clear Savings GoalFirst, define what you're saving for and how much you'll need. Let's say you expect to need a new roof and estimate the cost at $7,500. Now you have a specific target.Next, determine how much you can realistically save each month. If you can set aside $500, you'll reach your $7,500 goal in 15 months.But what if $500 isn't realistic? That's okay. Perhaps you start with $100 or $200 a month and look for opportunities to increase that amount over time.You might redirect money from another spending category, put part of a bonus or tax refund toward your goal, or deposit the savings from a canceled subscription.The important thing is to begin. Each deposit represents progress toward greater financial freedom. Instead of wondering how you'll pay for a major expense when it arrives, you're gradually preparing for it.That can reduce financial stress and give you more flexibility when the time comes to make the purchase.Keep Your Savings Separate and Automate the ProcessOnce you've set your goal, consider opening a dedicated savings account instead of mixing the money with your everyday checking, emergency savings, or other financial goals. When dollars have a clear purpose, you're less likely to spend them elsewhere.Then, automate the process whenever possible. You might schedule a transfer every payday or once a month. This turns saving from something you have to remember into part of your normal financial routine.Remember, your emergency fund and retirement accounts have different purposes.Using retirement money for a purchase today can trigger taxes and, depending on your age and circumstances, may also incur penalties. You'll also sacrifice the future growth those funds could have earned.Your retirement savings are meant to support a future season of life. Whenever possible, let them keep serving that purpose.Make Your Savings Goal SMARTAnother helpful approach is to make your savings goal S.M.A.R.T.: Specific, Measurable, Attainable, Relevant, and Time-bound.Specific: Identify exactly what you're saving for and how much you'll need.Measurable: Track your progress so you can see how close you're getting to your goal.Attainable: Choose a monthly savings amount that fits your financial situation without creating unnecessary strain.Relevant: Make sure the purchase aligns with your financial priorities and responsibilities.Time-bound: Establish a reasonable target date for reaching your goal.And remember, if you miss your target date, that doesn't mean you've failed. Adjust your plan and keep going. The goal isn't perfection. It's developing a consistent habit of preparing for future needs.Faithful Stewardship Begins Before the PurchaseWe often evaluate financial decisions at the moment of purchase. We ask whether we can afford something, whether it's a good deal, or whether it's worth the expense.Those are worthwhile questions. But good stewardship often begins long before the purchase itself. It happens when we patiently prepare, exercise self-control, and make intentional decisions with what God has entrusted to us.And there's nothing wrong with enjoying the good things God provides. Scripture reminds us in 1 Timothy 6:17 that God "richly provides us with everything to enjoy."The question isn't simply whether we should make a purchase, but how we can approach it wisely. Saving in advance allows us to enjoy those purchases without unnecessarily taking on debt or jeopardizing other financial priorities.Ultimately, preparing for major expenses is about more than accumulating money. It's about cultivating wisdom, patience, and contentment as we manage God's resources.The more intentional we are with today's money, the better prepared we can be for tomorrow's needs.If you're looking for a place to save toward future expenses, consider a dedicated savings or money market account. AdelFi Christian Banking, FaithFi's recommended banking partner, offers savings options worth exploring. You can learn more about its offerings, membership eligibility, and account insurance at FaithFi.com/Banking.And if you'd like help organizing your spending and savings goals, the FaithFi app can help you create a spending plan that reflects your priorities. Learn more at FaithFi.com/App.On Today’s Program, Rob Answers Listener Questions:My wife’s parents live in Texas and no longer have driver’s licenses. We’re having trouble registering their car despite setting up a transfer-on-death designation. What options do we have?My husband and I have had a whole-life policy for about 10 years with a $150,000 death benefit and roughly $19,000 in cash value. If we cancel, we’d receive about $16,000. Should we keep it or replace it with another type of life insurance?My mother passed away, and her vehicle is still titled in her name. Probate is already closed, but I’ve been told I may need to reopen it to transfer the title. Is there another option?My wife and I are turning 62 and still working in our business. Would it make sense for one of us to claim Social Security early and invest the benefits while the other delays?Resources Mentioned:Become a FaithFi PartnerAdelFi Christian BankingFaithful Steward: FaithFi’s Quarterly MagazineFaithFi Field Guide: How Much Money is Enough? Our Ultimate Treasure: A 21-Day Journey to Faithful Stewardship by Rob WestWisdom Over Wealth: 12 Lessons from Ecclesiastes on MoneyLook At The Sparrows: A 21-Day Devotional on Financial Fear and AnxietyRich Toward God: A Study on the Parable of the Rich FoolFind a Certified Kingdom Advisor® (CKA)FaithFi App Remember, you can call in to ask your questions every weekday at (800) 525-7000. Faith & Finance is also available on Moody Radio Network and American Family Radio. You can also visit FaithFi.com to connect with our online community and partner with us as we help more people live as faithful stewards of God’s resources. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Having an emergency fund is an important part of wise financial stewardship. But building one is only half the battle. You also need to know when to use it.It can be tempting to dip into emergency savings whenever an unexpected expense—or even an especially appealing purchase—comes along. But if we use those funds too freely, the money may not be there when a genuine emergency arrives.Proverbs 21:20 offers a helpful reminder: “Precious treasure and oil are in a wise man’s dwelling, but a foolish man devours it.”The principle is simple: wisdom prepares rather than consuming everything today. Financial emergencies are inevitable. A tire goes flat. An appliance fails. A major medical expense arrives. A job disappears unexpectedly.We can’t predict every expense, but we can prepare for them.Build Your Financial DefenseAn emergency fund is one of the most useful tools in a healthy financial plan. We often think about the “offense” of managing money—earning, saving, investing, and making progress toward our goals. But we also need a strong financial defense.A good starting point is an introductory emergency fund of around $1,000 to $1,500. That can help cover many smaller surprises without immediately turning to a credit card.Once you’ve paid off consumer debt and are taking advantage of any available employer retirement match, work toward building three to six months’ worth of living expenses.That larger reserve protects against more serious disruptions, such as job loss or extended illness, and can keep an unexpected setback from becoming a debt crisis.But once you’ve built that fund, how do you decide when to use it? Here are three questions to ask.1. Is It Urgent?Does this expense need to be handled right now, or could you wait and save up to purchase it?If something can reasonably wait, it probably isn’t an emergency.When you’re uncertain, consider giving yourself some time before taking money from the fund. Waiting even 30 days may help you determine whether the expense is truly urgent.Of course, some situations can’t wait. If your only vehicle breaks down and you need it to get to work, you may need repairs immediately. But if you have another vehicle available, you may have time to save toward the repair instead.Urgency helps distinguish an actual emergency from an inconvenience.2. Is It Necessary?The second question is whether the expense is truly necessary. This is where distinguishing between needs and wants becomes especially important.Suppose your vehicle is no longer reliable. Transportation may be a legitimate need, but that doesn’t necessarily mean you need a brand-new car. A less expensive used vehicle might meet the immediate need while allowing you to save toward something different later.An emergency fund is designed to protect you when essential needs arise—not to finance upgrades or purchases you would simply prefer to make sooner.3. Is It Unexpected?Finally, ask whether the expense was actually unexpected. There’s a significant difference between losing your job unexpectedly and realizing in December that you haven’t saved anything for Christmas.Christmas comes every year. So do birthdays, property taxes, insurance premiums, school expenses, and many home and vehicle maintenance costs.Those expenses may be irregular, but they aren’t emergencies.Instead, consider creating sinking funds for predictable expenses that don’t occur every month. Setting aside a little throughout the year lets you prepare without raiding your emergency savings.If an expense is urgent, necessary, and unexpected, then using your emergency fund may be entirely appropriate.Spend Carefully Even in an EmergencyPassing all three tests doesn’t mean you should automatically spend whatever it takes. You still want to respond wisely.Suppose you’re involved in an accident and face major vehicle repairs that insurance won’t cover. If you’ve already been setting money aside for your next vehicle, you may be able to use some of those savings first and withdraw less from your emergency fund.You can also review your monthly spending. Are there discretionary expenses you could temporarily reduce? Could you redirect some cash flow toward the immediate need?The goal isn’t to avoid using the emergency fund at all costs. That’s what the money is there for. The goal is to use it prudently so you preserve as much financial margin as possible.Rebuild the Fund AfterwardWhen you do use your emergency savings, rebuilding it should become a priority.Temporarily redirect money you were putting toward other financial goals until you restore your reserve. If possible, work your way back toward three to six months of essential living expenses.Financial margin gives you more than protection from unexpected bills. It creates flexibility.When difficult seasons arrive, adequate savings can help you meet your obligations without panic, avoid unnecessary debt, and keep living generously rather than letting financial scarcity dictate every decision.We can’t prevent every financial surprise. But with thoughtful preparation—and wisdom about when to use what we’ve saved—we can face those surprises with greater confidence and peace.On Today’s Program, Rob Answers Listener Questions:I’m 63, still working, have over $1 million saved, and only my mortgage remaining. How should I decide when to retire and when to claim Social Security? And if I retire before the mortgage is paid off, should I keep making payments or use savings to eliminate it?I’ve paid off about $15,000 of credit card debt and have roughly $14,500 left, with only about $1,000 in emergency savings. Should I keep paying the debt down aggressively on my own, or consider credit counseling—and how much should I keep in savings while I do it?Resources Mentioned:Become a FaithFi PartnerChristian Credit CounselorsRamsey Solutions Mortgage Payoff CalculatorFaithful Steward: FaithFi’s Quarterly MagazineFaithFi Field Guide: How Much Money is Enough? Our Ultimate Treasure: A 21-Day Journey to Faithful Stewardship by Rob WestWisdom Over Wealth: 12 Lessons from Ecclesiastes on MoneyLook At The Sparrows: A 21-Day Devotional on Financial Fear and AnxietyRich Toward God: A Study on the Parable of the Rich FoolFind a Certified Kingdom Advisor® (CKA)FaithFi App Remember, you can call in to ask your questions every weekday at (800) 525-7000. Faith & Finance is also available on Moody Radio Network and American Family Radio. You can also visit FaithFi.com to connect with our online community and partner with us as we help more people live as faithful stewards of God’s resources. 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