Owning and operating a vehicle is expensive. It’s often the second highest household expense. So this is one area where cost-cutting can have a big impact. We’ll offer some advice to help you trim those costs today on MoneyWise.

For some reason, the automobile category in the family budget never seems to get the scrutiny it should. We take for granted the need to drive without counting the cost.

As a depreciating asset, you lose money on a car even when you’re not driving it.

Then add the cost of financing, insurance, taxes and fees. Make no mistake, cars are expensive.

Now, we always tell you that buying a late model, dependable, used vehicle is the best way to get value for your dollars. But that’s not an argument for only buying used vehicles.

When financing a used car, once you pay it off, you should continue to make the payments to yourself, saving that money for the next vehicle purchase.

As you do that, you’ll be able to make a bigger down payment on the next car. Keep doing it, and eventually you’ll be able to buy a new car outright with cash.

I say all this because a recentarticle by the Humble Dollaradvocates a buy used and hold approach with a long list of strategies for getting the most out of your driving dollars when purchasing a car. Here are a few tips:

1. THREE YEARS OLD:You want to look for a vehicle that’s about three years old. And, typically, it should have between 20,000 and 50,000 miles on it. You won’t get that new car smell, but you’ll save a lot of money, and you’ll probably get years of trouble-free driving.

2. HANG ONTO IT:you want to keep that car for a very long time, so be diligent about maintenance. Try to hang on to the vehicle for at least 10 years, and the goal is to get around 150,000 miles out of it.

3. BEWARE OF EXTENDED WARRANTIES:You’ll get a lot of warranty expired notices. Ignore them and don’t get an extended warranty. Most people who purchase extended warranties never use them and it’s money down the drain.

Instead, set aside $200 to $250 a month to maintain older cars. Figure that about half of that will go toward routine maintenance, and the other half is available for repairs.

On the other hand, If you purchase a new vehicle, AAA says you should be able to get by with budgeting only $75 to $150 a month.

But there’s another benefit to buying late model, used vehicles. You’ll probably be able to drive higher-end models that you couldn’t afford if buying new. Think Toyota over Chevy. BY buying used, you may be able to get a vehicle for as much as 50% off the original sticker price.

MAKING THE PURCHASE

Now, all of this doesn’t happen by itself. You’ve got to put in the time and energy to find the right used car. There are plenty of online resources to get you started: AutoTrader, Cars.com, ebay and Craigslist to name a few.

You’ll probably save money buying from a private seller, rather than a dealership, but you won’t get a warranty. Always have the car inspected by an independent mechanic and get the vehicle history report from CarFax, Bumper or another service.

If you’re buying a used vehicle from a dealer, you’ll probably pay more, but expect to get new tires, brakes, and an oil change. That could be worth up to $1000. You’ll also get some kind of warranty when buying used from a dealer. This can vary widely with the best being 3-years or 36,000 miles.

WHEN IT’S THE END OF THE ROAD

Now, how do you know when it’s time to get rid of a vehicle? Keep in mind that in the majority of cases,it’s cheaper to repair your current vehicle than to purchase another one.

But eventually, every vehicle must be replaced. The automotive site Edmunds says it’s likely a good idea to replace your car when repair costs are greater than the vehicle's value - or one year's worth of monthly payments on a replacement.

When you know that a vehicle is nearing the end of its serviceable life, start looking for its replacement. Don’t wait for it to die.That way you can take your time and not be rushed into buying something right away.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

●What is the best way to save or invest for a child’s college education?

●Is The Timothy Fund a good option for a Christian investor?

●What is the best way to buy a used car?

●Should you use a monthly surplus to invest or to save for home purchase?

RESOURCES MENTIONED

●Eventide Funds

●Praxis Funds

●Inspire Investing

●Timothy Plan

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Owning and operating a vehicle is expensive. It’s often the second highest household expense. So this is one area where cost-cutting can have a big impact. We’ll offer some advice to help you trim those costs today on MoneyWise.

For some reason, the automobile category in the family budget never seems to get the scrutiny it should. We take for granted the need to drive without counting the cost.

As a depreciating asset, you lose money on a car even when you’re not driving it.

Then add the cost of financing, insurance, taxes and fees. Make no mistake, cars are expensive.

Now, we always tell you that buying a late model, dependable, used vehicle is the best way to get value for your dollars. But that’s not an argument for only buying used vehicles.

When financing a used car, once you pay it off, you should continue to make the payments to yourself, saving that money for the next vehicle purchase.

As you do that, you’ll be able to make a bigger down payment on the next car. Keep doing it, and eventually you’ll be able to buy a new car outright with cash.

I say all this because a recent article by the Humble Dollar advocates a buy used and hold approach with a long list of strategies for getting the most out of your driving dollars when purchasing a car. Here are a few tips:

1. THREE YEARS OLD: You want to look for a vehicle that’s about three years old. And, typically, it should have between 20,000 and 50,000 miles on it. You won’t get that new car smell, but you’ll save a lot of money, and you’ll probably get years of trouble-free driving.

2. HANG ONTO IT: you want to keep that car for a very long time, so be diligent about maintenance. Try to hang on to the vehicle for at least 10 years, and the goal is to get around 150,000 miles out of it.

3. BEWARE OF EXTENDED WARRANTIES: You’ll get a lot of warranty expired notices. Ignore them and don’t get an extended warranty. Most people who purchase extended warranties never use them and it’s money down the drain.

Instead, set aside $200 to $250 a month to maintain older cars. Figure that about half of that will go toward routine maintenance, and the other half is available for repairs.

On the other hand, If you purchase a new vehicle, AAA says you should be able to get by with budgeting only $75 to $150 a month.

But there’s another benefit to buying late model, used vehicles. You’ll probably be able to drive higher-end models that you couldn’t afford if buying new. Think Toyota over Chevy. BY buying used, you may be able to get a vehicle for as much as 50% off the original sticker price.

MAKING THE PURCHASE

Now, all of this doesn’t happen by itself. You’ve got to put in the time and energy to find the right used car. There are plenty of online resources to get you started: AutoTrader, Cars.com, ebay and Craigslist to name a few.

You’ll probably save money buying from a private seller, rather than a dealership, but you won’t get a warranty. Always have the car inspected by an independent mechanic and get the vehicle history report from CarFax, Bumper or another service.

If you’re buying a used vehicle from a dealer, you’ll probably pay more, but expect to get new tires, brakes, and an oil change. That could be worth up to $1000. You’ll also get some kind of warranty when buying used from a dealer. This can vary widely with the best being 3-years or 36,000 miles.

WHEN IT’S THE END OF THE ROAD

Now, how do you know when it’s time to get rid of a vehicle? Keep in mind that in the majority of cases, it’s cheaper to repair your current vehicle than to purchase another one.

But eventually, every vehicle must be replaced. The automotive site Edmunds says it’s likely a good idea to replace your car when repair costs are greater than the vehicle's value - or one year's worth of monthly payments on a replacement.

When you know that a vehicle is nearing the end of its serviceable life, start looking for its replacement. Don’t wait for it to die.That way you can take your time and not be rushed into buying something right away.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

● What is the best way to save or invest for a child’s college education?

● Is The Timothy Fund a good option for a Christian investor?

● What is the best way to buy a used car?

● Should you use a monthly surplus to invest or to save for home purchase?

RESOURCES MENTIONED

● Eventide Funds

● Praxis Funds

● Inspire Investing

● Timothy Plan

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab on our website or in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Soaring debt is a big problem for today’s college graduates. And not just student loans. Some leave college with tons of consumer debt, too. Today on MoneyWise, we’ll discuss how you or a loved one can graduate college with minimal debt.

The average graduate with student loans owes around $37,000, a sum that could take 20 years to pay off.

Proverbs 22:7 warns, The rich rules over the poor, and the borrower is slave of the lender. So every penny saved during your college years is a penny you won’t have to earn later to pay off debt.

TIPS TO MINIMIZE CONSUMER DEBT

Now, how do you do that? The only way anyone can stay on top of their finances is by making a monthly budget and sticking to it.

If you’re in school, you’re probably thinking, I don’t make enough money to budget. But that’s one of the biggest fallacies about finances. Budgets are important for everyone,and the less you make, the more critical it is to have a spending plan.

A budget will help keep you focused on your spending as you try to stay on track. You’ll have a much better idea of where your money is going. And to compliment that it’s a good idea in the first few months to write down everything you spend. That alone will help you spend less.

If you haven’t downloaded the free MoneyWise app do it today. It will not only help you set up a budget it’ll track all of your spending in real time. And as we often say if you’re watching your spending you’ll naturally do less of it.

And that’s what you want to do cut out all unnecessary spending. Paying $3 a day for designer coffee will cost you close to $100 a month.

And when you’re rushing from one class to the next,it’s always tempting to just buy your lunch somewhere. But packing a sandwich and apple before you head out in the morning will save you a fortune.

Next, think discounts. Most schools offer discounts to their students for things like concerts, plays and sporting events. But a lot of off-campus places, like restaurants and theaters, also offer special breaks and promotions for students. So, no matter where you go, pull out your student I.D. and ask for a discount.

This next one is a little dicey, so we recommend it only if you’ve worked up your budget and you’ve been sticking to it for several months. But if you’ve done that, you can take advantage of award credit cards for students.

You have to have at least an average credit score, but several of the big issuers have a special card for students. So, when you’re paying your rent, utilities, groceries or any number of things, you can get a little something back.

If you don’t trust yourself with a regular credit card, you can get a secured card. They also offer rewards, so that’s another way you can get cash back on your purchases without the risk of going into debt. With a secured card, you have to deposit cash into the account first and you can only spend up to that limit.

Also, consider downloading an app that’ll help you save money.Coupons.comis a good place to start, but many others likeShopsavvy,Coupon CabinandHoneymay also save you money.

There are also plenty of campus network apps that help you share costs with other students. Look forGroupMe,WeChat, andKik.

And since you need electives, why not take a class in personal finances, if one is offered? That’s one course that will start paying dividends immediately.

MINIMIZING STUDENT DEBT

We've talked a lot about consumer debt, but by far the bigger problem facing today’s graduates is student loan debt.

One way to minimize debt is to hunt relentlessly for every possible available college scholarship.

Another way is by getting a part time job while you’re in school. Maybe you can earn enough to pay for food and a few other expenses. Full-time school plus a part-time job is a lot to handle, but plenty of students manage to work their way through school and keep their grades up. You’ll be glad you did it later on when you graduate with less debt than many of your friends!

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

●Should you hang on to physical precious metal or sell it?

●When can you get private mortgage insurance removed from your home loan?

●When does it make sense to move investments into a fixed annuity?

●How do you determine whether it’s best to keep your aging vehicle or buy a newer car?

RESOURCES MENTIONED

●Find a Certified Kingdom Advisor

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Soaring debt is a big problem for today’s college graduates. And not just student loans. Some leave college with tons of consumer debt, too. Today on MoneyWise, we’ll discuss how you or a loved one can graduate college with minimal debt.

The average graduate with student loans owes around $37,000, a sum that could take 20 years to pay off.

Proverbs 22:7 warns, The rich rules over the poor, and the borrower is slave of the lender. So every penny saved during your college years is a penny you won’t have to earn later to pay off debt.

TIPS TO MINIMIZE CONSUMER DEBT

Now, how do you do that? The only way anyone can stay on top of their finances is by making a monthly budget and sticking to it.

If you’re in school, you’re probably thinking, I don’t make enough money to budget. But that’s one of the biggest fallacies about finances. Budgets are important for everyone, and the less you make, the more critical it is to have a spending plan.

A budget will help keep you focused on your spending as you try to stay on track. You’ll have a much better idea of where your money is going. And to compliment that it’s a good idea in the first few months to write down everything you spend. That alone will help you spend less.

If you haven’t downloaded the free MoneyWise app do it today. It will not only help you set up a budget it’ll track all of your spending in real time. And as we often say if you’re watching your spending you’ll naturally do less of it.

And that’s what you want to do cut out all unnecessary spending. Paying $3 a day for designer coffee will cost you close to $100 a month.

And when you’re rushing from one class to the next, it’s always tempting to just buy your lunch somewhere. But packing a sandwich and apple before you head out in the morning will save you a fortune.

Next, think discounts. Most schools offer discounts to their students for things like concerts, plays and sporting events. But a lot of off-campus places, like restaurants and theaters, also offer special breaks and promotions for students. So, no matter where you go, pull out your student I.D. and ask for a discount.

This next one is a little dicey, so we recommend it only if you’ve worked up your budget and you’ve been sticking to it for several months. But if you’ve done that, you can take advantage of award credit cards for students.

You have to have at least an average credit score, but several of the big issuers have a special card for students. So, when you’re paying your rent, utilities, groceries or any number of things, you can get a little something back.

If you don’t trust yourself with a regular credit card, you can get a secured card. They also offer rewards, so that’s another way you can get cash back on your purchases without the risk of going into debt. With a secured card, you have to deposit cash into the account first and you can only spend up to that limit.

Also, consider downloading an app that’ll help you save money. Coupons.com is a good place to start, but many others like Shopsavvy, Coupon Cabin and Honey may also save you money.

There are also plenty of campus network apps that help you share costs with other students. Look for GroupMe, WeChat, and Kik.

And since you need electives, why not take a class in personal finances, if one is offered? That’s one course that will start paying dividends immediately.

MINIMIZING STUDENT DEBT

We've talked a lot about consumer debt, but by far the bigger problem facing today’s graduates is student loan debt.

One way to minimize debt is to hunt relentlessly for every possible available college scholarship.

Another way is by getting a part time job while you’re in school. Maybe you can earn enough to pay for food and a few other expenses. Full-time school plus a part-time job is a lot to handle, but plenty of students manage to work their way through school and keep their grades up. You’ll be glad you did it later on when you graduate with less debt than many of your friends!

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

● Should you hang on to physical precious metal or sell it?

● When can you get private mortgage insurance removed from your home loan?

● When does it make sense to move investments into a fixed annuity?

● How do you determine whether it’s best to keep your aging vehicle or buy a newer car?

RESOURCES MENTIONED

● Find a Certified Kingdom Advisor

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab on our website or in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Millions of American workers plan to retire this year. Many wonder if they’ll have enough to stay retired. Inflation, interest rates, the stock market and the economy in general all can have an impact on retirement planning. How much does the average retiree need to live on? We’ll tackle that question today on MoneyWise.

The conventional wisdom is that after you stop working, you can live comfortably on 80-percent of your pre-retirement income. Financial planners arrive at that figure for a number of reasons.

WHY YOU GENERALLY NEED LESS INCOME IN RETIREMENT

Once you retire, you’ll no longer be putting 10-percent of your income into your retirement account. And since you’re no longer earning a salary, you won’t be paying 7.65-percent of it in Social Security and Medicare taxes.

You’ll no longer have work-related expenses like travel and clothing. And finally, a portion of your retirement income will come from Social Security benefits.

But a survey of recent retirees by T. Rowe Price found they were living on only 66-percent of their final working salary, and they reported being content.

Granted, those surveyed were described as relatively affluent, but the number is still somewhat surprising. How are they doing it?

It turns out that many of them saved more than 10-percent of their income during their working years. That not only increased the value of their portfolios it also trained them to watch their spending and stick to a budget.

Another huge factor was making it a priority to pay off their mortgage before retiring eliminating what is usually the biggest household expense.

In addition to that, successful retirees have found numerous ways to either cut their living expenses or increase their income. Here are a few examples.

CUTTING EXPENSES:

Some empty-nesters have looked around their unoccupied bedrooms and seen dollar signs. There are services like RoomMates4Boomers and SilverNest that can help you rent out a room in your house. COVID has put a crimp on that idea for the time being but as the pandemic eases it will become a more viable option.

Many retirees naturally take to gardening as a way to get fresh air and spruce up the landscape. It’s not a big leap to put in a vegetable garden, and everything you harvest reduces your grocery bill.

Do you really need two cars once you retire? You can save on insurance, registration and repair costs by getting rid of one of them.

Also, at this stage of life, do you really need life insurance? It’s supposed to replace lost income if you pass. But if the kids are grown and out of the house, you no longer need to provide for them.

And now that the house is paid for, do you plan to continue living there as long as possible? Most retirees want to stay in their homes, and it’s the cheapest place you can live, far cheaper than moving into an assisted living facility or nursing home.

You’re more likely to be able to stay in your home if you make it safe and accessible as you age. Installing grab handles and mats in bathrooms is also a good idea.

Curbless showers and walk-in bathtubs can also extend the time you’re able to care for yourself as you age.

But by far the most important thing you can do to keep living at home is to exercise. Staying fit and limber is a prerequisite for taking care of yourself and staying out of a nursing home.

These ideas can help you retire comfortably and probably on far less than 80-percent of working salary.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

● When is it wise to utilize debt for property investment?

● At what point does it make sense for a young couple to meet with a financial advisor?

● What is the best way to invest $5,000 when close to retirement?

● When does it make sense to cash in government savings bonds?

● What are your options if you’ve hired a contractor to build a house and find that the work is substandard?

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab on our website or in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Millions of American workers plan to retire this year. Many wonder if they’ll have enough to stay retired. Inflation, interest rates, the stock market and the economy in general all can have an impact on retirement planning. How much does the average retiree need to live on? We’ll tackle that question today on MoneyWise.

The conventional wisdom is that after you stop working, you can live comfortably on 80-percent of your pre-retirement income. Financial planners arrive at that figure for a number of reasons.

WHY YOU GENERALLY NEED LESS INCOME IN RETIREMENT

Once you retire, you’ll no longer be putting 10-percent of your income into your retirement account. And since you’re no longer earning a salary, you won’t be paying 7.65-percent of it in Social Security and Medicare taxes.

You’ll no longer have work-related expenses like travel and clothing. And finally, a portion of your retirement income will come from Social Security benefits.

But a survey of recent retirees by T. Rowe Price found they were living on only 66-percent of their final working salary, and they reported being content.

Granted, those surveyed were described as relatively affluent, but the number is still somewhat surprising. How are they doing it?

It turns out that many of them saved more than 10-percent of their income during their working years. That not only increased the value of their portfolios it also trained them to watch their spending and stick to a budget.

Another huge factor was making it a priority to pay off their mortgage before retiring eliminating what is usually the biggest household expense.

In addition to that, successful retirees have found numerous ways to either cut their living expenses or increase their income. Here are a few examples.

CUTTING EXPENSES:

Some empty-nesters have looked around their unoccupied bedrooms and seen dollar signs. There are services like RoomMates4Boomers and SilverNest that can help you rent out a room in your house. COVID has put a crimp on that idea for the time being but as the pandemic eases it will become a more viable option.

Many retirees naturally take to gardening as a way to get fresh air and spruce up the landscape. It’s not a big leap to put in a vegetable garden, and everything you harvest reduces your grocery bill.

Do you really need two cars once you retire? You can save on insurance, registration and repair costs by getting rid of one of them.

Also, at this stage of life, do you really need life insurance? It’s supposed to replace lost income if you pass. But if the kids are grown and out of the house, you no longer need to provide for them.

And now that the house is paid for, do you plan to continue living there as long as possible? Most retirees want to stay in their homes, and it’s the cheapest place you can live, far cheaper than moving into an assisted living facility or nursing home.

You’re more likely to be able to stay in your home if you make it safe and accessible as you age. Installing grab handles and mats in bathrooms is also a good idea.

Curbless showers and walk-in bathtubs can also extend the time you’re able to care for yourself as you age.

But by far the most important thing you can do to keep living at home is to exercise. Staying fit and limber is a prerequisite for taking care of yourself and staying out of a nursing home.

These ideas can help you retire comfortably and probably on far less than 80-percent of working salary.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

●When is it wise to utilize debt for property investment?

●At what point does it make sense for a young couple to meet with a financial advisor?

●What is the best way to invest $5,000 when close to retirement?

●When does it make sense to cash in government savings bonds?

●What are your options if you’ve hired a contractor to build a house and find that the work is substandard?

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Car prices are high right now for both new and used vehicles. That’s leading many folks to make a big mistake when financing. Art Rainer joins Rob West today to help you avoid that mistake.

MoneyWise contributor Art Rainer is vice president of The College at Southeastern and the author of many books on life and finances from a biblical perspective.

The average price for a new car is now almost $46,500. That’s up 14-percent from a year ago.

That’s largely because factories can’t get parts, mainly computer chips, and that’s limited production of new vehicles. That, in turn, has raised demand for used vehicles.

And all of this is causing some folks to make bad decisions when financing.

When it comes to cars, the best way to purchase them is with cash.

However, many opt to finance their car with debt. And some of them are signing long-term (beyond 60 months or 5 years) loan agreements to get that car. According to Experian, around 25% of those who financed their car did so with a loan between 73 and 84 months. 84 months that’s 7 years!

A long-term loan reduces the monthly payment, making the car appear more affordable.But the appearance of affordability is deceiving. These longer term loans are quite simply bad deals.

REASONS WHY LONG-TERM LOANS ARE BAD DEALS

1. You start out underwater.This mainly applies to the purchase of new cars, which drop significantly in value as soon as you drive them off the lot. But all cars, new or used, are depreciating assets. They don't increase in value.

The smaller payments in longer-term loans don’t allow you to keep up with the car’s depreciation. If you decide to sell the car before the loan is complete, you may have to bring money to the table just to get rid of it.

2. You pay a lot of interest.This happens two ways. First, your longer-term loan ensures that you’ll pay interest over a longer period of time. Consider the difference between a 30-year mortgage and a 15-year mortgage. Because the principle does not decrease as fast with a 30-year mortgage, you end up paying around two times more interest than the 15-year term. The same is true for car loans.

Second, longer term car loans tend to have higher interest rates than shorter term loans, usually after the 60-month (5-year) mark. Cars are almost always bad investments, outside of their function to get you to and from where you need to go.

3. You’re more likely to make payments and pay for repairs at the same time.Even with a new, reliable brand, you’ll probably have some type of repair need in year five, six, or seven. All cars eventually wear down.

This is especially true when you purchase a used car. And so while you’re spending money to repair the car, you still owe money on your car loan. The double hit can have significant consequences on your finances.

THE SOLUTION?

Consider the cost of the car. If possible, look for cars where you can pay cash (no debt). This means that you may not be able to purchase your dream car right now. And that’s okay.

Art Rainer’s been our guest today. You can find out more about him and his books and articles on God and money atArtRainer.com.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

●How do you determine if a will or a living trust is best for you?

●What is the best way to prepay a mortgage?

●What exactly is cryptocurrency?

●How do you figure out whether it’s best to rent or buy later in life?

●What is the best way for a young adultto choose a loan to begin building credit?

RESOURCES MENTIONED

●NerdWallet

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

Car prices are high right now for both new and used vehicles. That’s leading many folks to make a big mistake when financing. Art Rainer joins Rob West today to help you avoid that mistake.

MoneyWise contributor Art Rainer is vice president of The College at Southeastern and the author of many books on life and finances from a biblical perspective.

The average price for a new car is now almost $46,500. That’s up 14-percent from a year ago.

That’s largely because factories can’t get parts, mainly computer chips, and that’s limited production of new vehicles. That, in turn, has raised demand for used vehicles.

And all of this is causing some folks to make bad decisions when financing.

When it comes to cars, the best way to purchase them is with cash.

However, many opt to finance their car with debt. And some of them are signing long-term (beyond 60 months or 5 years) loan agreements to get that car. According to Experian, around 25% of those who financed their car did so with a loan between 73 and 84 months. 84 months that’s 7 years!

A long-term loan reduces the monthly payment, making the car appear more affordable. But the appearance of affordability is deceiving. These longer term loans are quite simply bad deals.

REASONS WHY LONG-TERM LOANS ARE BAD DEALS

1. You start out underwater. This mainly applies to the purchase of new cars, which drop significantly in value as soon as you drive them off the lot. But all cars, new or used, are depreciating assets. They don't increase in value.

The smaller payments in longer-term loans don’t allow you to keep up with the car’s depreciation. If you decide to sell the car before the loan is complete, you may have to bring money to the table just to get rid of it.

2. You pay a lot of interest. This happens two ways. First, your longer-term loan ensures that you’ll pay interest over a longer period of time. Consider the difference between a 30-year mortgage and a 15-year mortgage. Because the principle does not decrease as fast with a 30-year mortgage, you end up paying around two times more interest than the 15-year term. The same is true for car loans.

Second, longer term car loans tend to have higher interest rates than shorter term loans, usually after the 60-month (5-year) mark. Cars are almost always bad investments, outside of their function to get you to and from where you need to go.

3. You’re more likely to make payments and pay for repairs at the same time. Even with a new, reliable brand, you’ll probably have some type of repair need in year five, six, or seven. All cars eventually wear down.

This is especially true when you purchase a used car. And so while you’re spending money to repair the car, you still owe money on your car loan. The double hit can have significant consequences on your finances.

THE SOLUTION?

Consider the cost of the car. If possible, look for cars where you can pay cash (no debt). This means that you may not be able to purchase your dream car right now. And that’s okay.

Art Rainer’s been our guest today. You can find out more about him and his books and articles on God and money at ArtRainer.com.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

● How do you determine if a will or a living trust is best for you?

● What is the best way to prepay a mortgage?

● What exactly is cryptocurrency?

● How do you figure out whether it’s best to rent or buy later in life?

● What is the best way for a young adult to choose a loan to begin building credit?

RESOURCES MENTIONED

● NerdWallet

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab on our website or in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

As Christians, we have certain duties: to be obedient, generous and always honest, to be like Christ and to do His will. How does that extend to our investing? Robert Netzly joins Rob West today to discuss that.

Robert Netzly is CEO ofInspire Investing, an underwriter of this program.

WHAT IS THE DUTY OF A CHRISTIAN INVESTOR?

Many will answer that question by referencing the Parable of the Talents in Matthew 25, believing that the answer is to be a careful but assertive investor, earning high returns while minimizing risk.

There is certainly some truth to that, but that doesn’t paint a complete picture.

Consider also the need to clean the inside of the cup.

Matthew 23:25-28:Woe to you, teachers of the law and Pharisees, you hypocrites! You clean the outside of the cup and dish, but inside they are full of greed and self-indulgence. 26 Blind Pharisee! First clean the inside of the cup and dish, and then the outside also will be clean.

What are the companies INSIDE your portfolio and what products and services are they selling?

We must first ensure that we invest in activities that glorify God, avoiding investments in immoral businesses. And then we can move on to consider the outside of the cup, shrewdly managing our portfolio for optimal financial returns.

EASIER SAID THE DONE? YES. BUT DOABLE.

Yes, this is a higher calling, a harder job and greater responsibility than what the secular investor is faced with. But we serve a perfect God who calls us to be perfect even as He is perfect, so we shouldn’t expect obedience to be easy.

Thankfully, He also promises to give wisdom to those who ask and to be with us always, even unto the end of the age. He also promises grace and forgiveness for all those who have trusted in Jesus when we inevitably fall short.

A good investment steward seeks to glorify God by simultaneously ensuring the companies he or she invests in align with God’s values while also earning respectable returns.

Between the two objectives of holiness and profit, the Bible tells us that we should give priority to holiness. Proverbs 16:9 clearly spells this out, Better is a little with righteousness than great revenues with injustice.

COMPANIES THAT DON’T HONOR GOD

Robert Netzly says one example of a company that does not honor God would beAmazon.

- 16 counts of LGBT Philanthropy

- 3 counts of LGBT legislation

- Counts of LGBT Promotion

Another bad company would be Johnson Johnson:

- 1 count Abortifacients

- 1 count embryonic cell research

COMPANIES THAT ARE DOING GOOD IN THE WORLD

A good example would beCostco:

- 13 counts of positive action with 0 negative

- 5 counts of positive environmental action

- 5 counts of positive social; action

CLEANING THE INSIDE OF THE CUP

What is a good way for a Christian investor to get started cleaning the inside of his cup?

A good first step is to discover what’s really going on inside your portfolio using technology likeinspireinsight.comor talking with a Christian financial advisor specially trained in biblically responsible investing likeInspire Advisors.

Making a bunch of money from immoral activities does not please or honor God.

Likewise, making investments in companies with good morals but terrible business results that do nothing but make bad products and lose money is also poor stewardship and is not honoring to God.

The resources at InspireInvesting.com can help us find companies that are in that sweet spot, engaged in activities that honor God, but also managing their companies well and producing products and services that give a return on investment. Thanks for dropping by, Robert.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

●How can you find the best possible option for a home loan?

●Do you have to refinance your FHA mortgage to get rid of private mortgage insurance?

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them [email protected]. Also, visit our website atMoneyWise.orgwhere you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook atMoneyWise Mediafor videos and the very latest discussion!Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking theDonate tab on our websiteor in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29

As Christians, we have certain duties: to be obedient, generous and always honest, to be like Christ and to do His will. How does that extend to our investing? Robert Netzly joins Rob West today to discuss that.

Robert Netzly is CEO of Inspire Investing, an underwriter of this program.

WHAT IS THE DUTY OF A CHRISTIAN INVESTOR?

Many will answer that question by referencing the Parable of the Talents in Matthew 25, believing that the answer is to be a careful but assertive investor, earning high returns while minimizing risk.

There is certainly some truth to that, but that doesn’t paint a complete picture.

Consider also the need to clean the inside of the cup.

Matthew 23:25-28: Woe to you, teachers of the law and Pharisees, you hypocrites! You clean the outside of the cup and dish, but inside they are full of greed and self-indulgence. 26 Blind Pharisee! First clean the inside of the cup and dish, and then the outside also will be clean.

What are the companies INSIDE your portfolio and what products and services are they selling?

We must first ensure that we invest in activities that glorify God, avoiding investments in immoral businesses. And then we can move on to consider the outside of the cup, shrewdly managing our portfolio for optimal financial returns.

EASIER SAID THE DONE? YES. BUT DOABLE.

Yes, this is a higher calling, a harder job and greater responsibility than what the secular investor is faced with. But we serve a perfect God who calls us to be perfect even as He is perfect, so we shouldn’t expect obedience to be easy.

Thankfully, He also promises to give wisdom to those who ask and to be with us always, even unto the end of the age. He also promises grace and forgiveness for all those who have trusted in Jesus when we inevitably fall short.

A good investment steward seeks to glorify God by simultaneously ensuring the companies he or she invests in align with God’s values while also earning respectable returns.

Between the two objectives of holiness and profit, the Bible tells us that we should give priority to holiness. Proverbs 16:9 clearly spells this out, Better is a little with righteousness than great revenues with injustice.

COMPANIES THAT DON’T HONOR GOD

Robert Netzly says one example of a company that does not honor God would be Amazon.

- 16 counts of LGBT Philanthropy

- 3 counts of LGBT legislation

- Counts of LGBT Promotion

Another bad company would be Johnson Johnson:

- 1 count Abortifacients

- 1 count embryonic cell research

COMPANIES THAT ARE DOING GOOD IN THE WORLD

A good example would be Costco:

- 13 counts of positive action with 0 negative

- 5 counts of positive environmental action

- 5 counts of positive social; action

CLEANING THE INSIDE OF THE CUP

What is a good way for a Christian investor to get started cleaning the inside of his cup?

A good first step is to discover what’s really going on inside your portfolio using technology like inspireinsight.com or talking with a Christian financial advisor specially trained in biblically responsible investing like Inspire Advisors.

Making a bunch of money from immoral activities does not please or honor God.

Likewise, making investments in companies with good morals but terrible business results that do nothing but make bad products and lose money is also poor stewardship and is not honoring to God.

The resources at InspireInvesting.com can help us find companies that are in that sweet spot, engaged in activities that honor God, but also managing their companies well and producing products and services that give a return on investment. Thanks for dropping by, Robert.

LISTENER QUESTIONS

On today’s program, Rob also answers listener questions:

● How can you find the best possible option for a home loan?

● Do you have to refinance your FHA mortgage to get rid of private mortgage insurance?

Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab on our website or in our app.

To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29