Here’s a riddle for you: what’s worth $6 trillion and has a big red bullseye on its back? Give up? It’s the huge pile of money making up the bulk of many retirement accounts, the 401(k). The tax benefits of 401(k) plans are fairly generous for now, but that could change as cash-strapped federal and state governments look to increase revenue. Today on MoneyWise, host Rob West tells us how to prepare.

Why are employer-sponsored 401(k) plans so popular? They offer a whole basket of benefits including automatic contributions from your paycheck, tax-deferred, contributions and earnings and possibly employer matching contributions.

What’s the problem with 401(k)s? Being tax-deferred means they grow now but you have to pay later. Contributing to a 401(k) has always made sense because most of us assume that our income will be lower in retirement when 401(k) withdrawals are taxed as regular income.

It’s the paying later part that now has some observers questioning whether the 401(k) is the be-all and end-all of retirement planning.

There’s the belief that government may well increase taxes on 401(k)s in the future. Why do some think that will happen? It’s one more thing you can blame on the coronavirus pandemic: business shutdowns and high unemployment caused a huge drop in government revenue. Add in the cost of relief programs and you have federal and state governments looking for ways to overcome budget shortfalls, even more than usual. So no doubt some lawmakers are looking at the $6 trillion held in 401(k)s as the solution, and this is why we might expect tax hikes down the road.

Should we give up the 401(k)? No, that would be an over-reaction for most 401(k) savers, especially if your employer still offers matching contributions which many call free money. Plus, in the event you suffer a financial calamity, your 401(k) is protected against liens and creditors.

We often talk about the need to diversify investment holdings. That’s a biblical principle spelled out in Ecclesiastes 11:2, Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.The same way you diversify your portfolio in stocks versus bonds (or by holding equities in different sectors of the economy), you can also diversify between taxable and non-taxable income streams in retirement. The easiest way to do that is by putting some of your money into a designated Roth account if your 401(k) plan has that feature. This is a Roth account within your 401(k) where you would contribute after-tax money. Later, in retirement, withdrawals of those contributions and earnings would be tax free. So you’re setting up a tax-free income stream in retirement.

Finally, a taxable brokerage account is an option for hedging against future 401(k) tax hikes. Thisallows you to get around the caps and restrictions of a qualified retirement plan. However, you would incur taxes year to year. So it’s not a great option. But if you’re able to max out your contributions to a 401(k) and Roth and still have money to invest, a regular brokerage account is probably the way to go.

Here are questions we answered from our callers on today’s program:

What do you think about leasing cars? And what do you think about the buy-out option at the end of those leases?

Have you heard of the idea of paying off your mortgage using a HELOC?

I began working at a very late age, 59 years old! When I began work then (I’m 72 years old today), I signed up for a pension plan. About a year ago, they told me that I’ll have to start taking some of the money out of that pension. Does the pension continue to build up while I’m working or does it finally get all used up?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

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 at the top of the page.

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

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

Heres a riddle for you: whats worth $6 trillion and has a big red bullseye on its back? Give up? Its the huge pile of money making up the bulk of many retirement accounts, the 401(k). The tax benefits of 401(k) plans are fairly generous for now, but that could change as cash-strapped federal and state governments look to increase revenue. Today on MoneyWise, host Rob West tells us how to prepare.

Why are employer-sponsored 401(k) plans so popular? They offer a whole basket of benefits including automatic contributions from your paycheck, tax-deferred, contributions and earnings and possibly employer matching contributions.

Whats the problem with 401(k)s? Being tax-deferred means they grow now but you have to pay later. Contributing to a 401(k) has always made sense because most of us assume that our income will be lower in retirement when 401(k) withdrawals are taxed as regular income.

Its the paying later part that now has some observers questioning whether the 401(k) is the be-all and end-all of retirement planning.

Theres the belief that government may well increase taxes on 401(k)s in the future. Why do some think that will happen? Its one more thing you can blame on the coronavirus pandemic: business shutdowns and high unemployment caused a huge drop in government revenue. Add in the cost of relief programs and you have federal and state governments looking for ways to overcome budget shortfalls, even more than usual. So no doubt some lawmakers are looking at the $6 trillion held in 401(k)s as the solution, and this is why we might expect tax hikes down the road.

Should we give up the 401(k)? No, that would be an over-reaction for most 401(k) savers, especially if your employer still offers matching contributions which many call free money. Plus, in the event you suffer a financial calamity, your 401(k) is protected against liens and creditors.

We often talk about the need to diversify investment holdings. Thats a biblical principle spelled out in Ecclesiastes 11:2, Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.The same way you diversify your portfolio in stocks versus bonds (or by holding equities in different sectors of the economy), you can also diversify between taxable and non-taxable income streams in retirement. The easiest way to do that is by putting some of your money into a designated Roth account if your 401(k) plan has that feature. This is a Roth account within your 401(k) where you would contribute after-tax money. Later, in retirement, withdrawals of those contributions and earnings would be tax free. So youre setting up a tax-free income stream in retirement.

Finally, a taxable brokerage account is an option for hedging against future 401(k) tax hikes. Thisallows you to get around the caps and restrictions of a qualified retirement plan. However, you would incur taxes year to year. So its not a great option. But if youre able to max out your contributions to a 401(k) and Roth and still have money to invest, a regular brokerage account is probably the way to go.

Here are questions we answered from our callers on todays program:

What do you think about leasing cars? And what do you think about the buy-out option at the end of those leases?

Have you heard of the idea of paying off your mortgage using a HELOC?

I began working at a very late age, 59 years old! When I began work then (Im 72 years old today), I signed up for a pension plan. About a year ago, they told me that Ill have to start taking some of the money out of that pension. Does the pension continue to build up while Im working or does it finally get all used up?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion!Remember that its your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

For decades, a single number between 300 and 8-50 has largely determined whether you could get a loan. It’s your FICO credit score, of course. But that’s changed. Now there are two FICO scores.That’s right. Fair Isaac and Company, or FICO, has a new system to measure your credit worthiness. Financial planner and teacher Rob West has the details and explains how it works to your advantage or not. Then it’s your calls at 800-525-7000.

FICO is now offering two different scoring methods to lenders and if you follow the basic rules about credit scores you have nothing to worry about.

The rules are pay your bills on time, never have a balance that’s more than 30-percent of your available credit, keep the number of credit accounts to a minimum, and don’t apply for several loans or credit cards at once.

The traditional FICO score is based on five factors, each making up a percentage of your score. Payment history is the big one whether you’ve made at least your minimum payments on time. That makes up a full 35-percent of your score.

That’s followed by the total amount you owe in relation to your income comprising 30-percent. Then the length of your payment history accounts for 15-percent, followed by the types of accounts you have, 10-percent, and last new credit, another 10-percent. When FICO crunches those numbers, they come up with a score somewhere between 300 and 850.

The new score, which is called the FICO Resilience Index or FRI, essentially tosses out your payment history, historically, the single most important factor in determining your credit worthiness.

It’s designed to predict which consumers are more likely to default on payments during a time of economic stress. That explains the word resilience in the name.

The new score doesn’t replace the old score, but instead gives lenders just one more tool to use when deciding whether to give you a loan.

The new score is based onpretty much the four remaining factors of the old score - Your credit mix, meaning the types of accounts you have.

-The total of your revolving balances. Obviously, the lower that number, the better.

-Next is the number of active accounts you have. FICO says resilient consumers have only about three active accounts, while less resilient consumers have more like 10.

-And finally, the number of inquiries lenders have made concerning your credit. More resilient people have one or less in the past year less resilient folks have between one and three.

Here are some questions we answered from our callers on today’s program:

My credit score is in the 700s. How can I get it in the 800s?

I am in the market to buy my first home and the homes I am looking at are selling for more than what the home owners want to ask for them. Should I wait to buy?

I received an unexpected pension of 16K. I owe 8K on my car. I want to keep some of it liquid to make some needed home renovations. I receive disability every month. I would like to put the money somewhere where it will grow. Advice?

My parents have done a will. Is this the best way for me to inherit?

My credit score went down 8 points in June because of a Sears credit card. What is the best way to cancel this card and not reduce my credit score more?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

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 at the top of the page.

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

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

For decades, a single number between 300 and 8-50 has largely determined whether you could get a loan. Its your FICO credit score, of course. But thats changed. Now there are two FICO scores.Thats right. Fair Isaac and Company, or FICO, has a new system to measure your credit worthiness. Financial planner and teacher Rob West has the details and explains how it works to your advantage or not. Then its your calls at 800-525-7000.

FICO is now offering two different scoring methods to lenders and if you follow the basic rules about credit scores you have nothing to worry about.

The rules are pay your bills on time, never have a balance thats more than 30-percent of your available credit, keep the number of credit accounts to a minimum, and dont apply for several loans or credit cards at once.

The traditional FICO score is based on five factors, each making up a percentage of your score. Payment history is the big one whether youve made at least your minimum payments on time. That makes up a full 35-percent of your score.

Thats followed by the total amount you owe in relation to your income comprising 30-percent. Then the length of your payment history accounts for 15-percent, followed by the types of accounts you have, 10-percent, and last new credit, another 10-percent. When FICO crunches those numbers, they come up with a score somewhere between 300 and 850.

The new score, which is called the FICO Resilience Index or FRI, essentially tosses out your payment history, historically, the single most important factor in determining your credit worthiness.

Its designed to predict which consumers are more likely to default on payments during a time of economic stress. That explains the word resilience in the name.

The new score doesnt replace the old score, but instead gives lenders just one more tool to use when deciding whether to give you a loan.

The new score is based onpretty much the four remaining factors of the old score - Your credit mix, meaning the types of accounts you have.

-The total of your revolving balances. Obviously, the lower that number, the better.

-Next is the number of active accounts you have. FICO says resilient consumers have only about three active accounts, while less resilient consumers have more like 10.

-And finally, the number of inquiries lenders have made concerning your credit. More resilient people have one or less in the past year less resilient folks have between one and three.

Here are some questions we answered from our callers on todays program:

My credit score is in the 700s. How can I get it in the 800s?

I am in the market to buy my first home and the homes I am looking at are selling for more than what the home owners want to ask for them. Should I wait to buy?

I received an unexpected pension of 16K. I owe 8K on my car. I want to keep some of it liquid to make some needed home renovations. I receive disability every month. I would like to put the money somewhere where it will grow. Advice?

My parents have done a will. Is this the best way for me to inherit?

My credit score went down 8 points in June because of a Sears credit card. What is the best way to cancel this card and not reduce my credit score more?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion!Remember that its your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

How many times have you heard the phrase, The three credit reporting bureaus on this program and elsewhere? Did you know there are at least 10 of them monitoring your transactions? It’s true, and odds are you’ve never heard of most of thembut they know all about you. Today, on MoneyWise, Kingdom Advisors President Rob West reveals all kinds of credit bureaus keeping tabs on you.

Why in the world do we need 10 or more credit bureaus? Because most of them try to cater to different lender needs. The Big Three, Experian, Transunion, and Equifax, are general in nature. They monitor how you handle transactions of credit cards, mortgages, auto loans, etc. The others are what we might call boutique bureaus with a highly specific client base. They look at other areas of your day-to-day transactions. Many of these use different formulas and scoring ranges to determine your credit worthiness.

SageStream received publicity recently when an individual in North Carolina having a FICO score around 800 was turned down for a car loan. FICO-wise that’s an extremely high score. But that person’s SageStream score was in the 600s.

ChexSystems and Certegy Check Services monitor your checking account. The Big Three don’t report overdrafts unless they go to a collection agency, so banks use ChexSystems and Certegy to see if you’re an overdraft risk and whether they should let you open a checking account.

Innovis is sometimes called the fourth credit bureau because it collects similar information to the Big Three. But Innovis also reports on things like rent payments, utility bills, and even magazine subscriptions.

Clarity Services is another. It’s owned by Experian and focuses on individuals and businesses looking for alternative financing, otherwise known as the sub-prime marketthings like payday loans (which are horrible and you should never apply for one) and other check-cashing services.

A similar boutique bureau is Teletrack which reports to sub-prime credit card issuers, rent-to-own businesses, and furniture storesmore places where you don’twant to apply for credit.

Finally, there’s Credco. Of all 10 credit bureaus we’ve named, this one might have the most impact on your FICO score because it combines all of your transactions from the Big Three into one report. So very little is missed. Credco looks at property ownership, loan obligations, legal filings (including liens and judgments), rental applications, collection accounts, and even whether you’re up to date on child support.

As long as you pay all of your bills on time and keep your credit balances lowbelow 30% of your available credit (or better yet, have no balance at all)you shouldn’t worry about credit bureaus accurately reporting your transactions.

Here are the websites for the referenced credit reporting bureaus:Equifax,Transunion,Experian,SageStream,ChexSystems,Certegy Check Services,Innovis,Clarity Services,Teletrack,Credco.

Here are just a couple of questions answered from our callers on today’s program:

What can you tell me about HELOCShome equity lines of credit? Are these a scam?

Virtual credit cards. Regarding online purchases, for example, how are returns handled? What do you think of these?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

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 at the top of the page.

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

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

How many times have you heard the phrase, The three credit reporting bureaus on this program and elsewhere? Did you know there are at least 10 of them monitoring your transactions? Its true, and odds are youve never heard of most of thembut they know all about you. Today, on MoneyWise, Kingdom Advisors President Rob West reveals all kinds of credit bureaus keeping tabs on you.

Why in the world do we need 10 or more credit bureaus? Because most of them try to cater to different lender needs. The Big Three, Experian, Transunion, and Equifax, are general in nature. They monitor how you handle transactions of credit cards, mortgages, auto loans, etc. The others are what we might call boutique bureaus with a highly specific client base. They look at other areas of your day-to-day transactions. Many of these use different formulas and scoring ranges to determine your credit worthiness.

SageStream received publicity recently when an individual in North Carolina having a FICO score around 800 was turned down for a car loan. FICO-wise thats an extremely high score. But that persons SageStream score was in the 600s.

ChexSystems and Certegy Check Services monitor your checking account. The Big Three dont report overdrafts unless they go to a collection agency, so banks use ChexSystems and Certegy to see if youre an overdraft risk and whether they should let you open a checking account.

Innovis is sometimes called the fourth credit bureau because it collects similar information to the Big Three. But Innovis also reports on things like rent payments, utility bills, and even magazine subscriptions.

Clarity Services is another. Its owned by Experian and focuses on individuals and businesses looking for alternative financing, otherwise known as the sub-prime marketthings like payday loans (which are horrible and you should never apply for one) and other check-cashing services.

A similar boutique bureau is Teletrack which reports to sub-prime credit card issuers, rent-to-own businesses, and furniture storesmore places where you dontwant to apply for credit.

Finally, theres Credco. Of all 10 credit bureaus weve named, this one might have the most impact on your FICO score because it combines all of your transactions from the Big Three into one report. So very little is missed. Credco looks at property ownership, loan obligations, legal filings (including liens and judgments), rental applications, collection accounts, and even whether youre up to date on child support.

As long as you pay all of your bills on time and keep your credit balances lowbelow 30% of your available credit (or better yet, have no balance at all)you shouldnt worry about credit bureaus accurately reporting your transactions.

Here are the websites for the referenced credit reporting bureaus:Equifax,Transunion,Experian,SageStream,ChexSystems,Certegy Check Services,Innovis,Clarity Services,Teletrack,Credco.

Here are just a couple of questions answered from our callers on todays program:

What can you tell me about HELOCShome equity lines of credit? Are these a scam?

Virtual credit cards. Regarding online purchases, for example, how are returns handled? What do you think of these?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion!Remember that its your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

There’s an old joke that if you lined up all the economists in a single file they’d still point in different directions. But they’re all in agreement ononething today, the U.S. economy has taken a big hit.But how bigand where? And what are the prospects for recovery as the coronavirus pandemic plays out? Today, host Rob West chats with economist Jerry Bowyer to find out,and how the big picture affectsyou.Jerry Bowyer is chief economist at Vident Financial. Then we take your calls at 800-525-7000.

.

With the resurgence of coronavirus cases many businesses have gone into a second phase of shutdowns. Jerry Bowyer describes the overall economy today and where he sees the market?

He talks about how the economy is recovering quickly. He discusses how the data looks at a wide range of measurements and how 45 of the 50 states have a growing economy. He says that since April, everything has been going up.

Jerry talks about how most of the economy comes from manufacture and supply chain production. He says that this part of the economy is coming back very strongly.

We can recover even without some businesses opening back up.

He talks about where the recovery came from, the producer or the consumer. Jerry talks about his faith and how God created us to be producers rather than consumers.

Jerry talks about what parts of the market are doing well and what parts are still struggling a bit.

Jerry talks about the coming election and how he thinks this will have an impact on the economy.

Here are some questions we answered from our callers on today’s program:

My oldest son is starting college. My in laws started a savings fund for him with 30K in it. Should we be paying as much as we can out of pocket to save the money for later or use the money now?

I don’t use credit cards too much. I opened a secured card a few months ago. My credit line went up and my score dropped 20 points. How can I get it back up?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

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 at the top of the page.

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

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

Theres an old joke that if you lined up all the economists in a single file theyd still point in different directions. But theyre all in agreement ononething today, the U.S. economy has taken a big hit.But how bigand where? And what are the prospects for recovery as the coronavirus pandemic plays out? Today, host Rob West chats with economist Jerry Bowyer to find out,and how the big picture affectsyou.Jerry Bowyer is chief economist at Vident Financial. Then we take your calls at 800-525-7000.

.

With the resurgence of coronavirus cases many businesses have gone into a second phase of shutdowns. Jerry Bowyer describes the overall economy today and where he sees the market?

He talks about how the economy is recovering quickly. He discusses how the data looks at a wide range of measurements and how 45 of the 50 states have a growing economy. He says that since April, everything has been going up.

Jerry talks about how most of the economy comes from manufacture and supply chain production. He says that this part of the economy is coming back very strongly.

We can recover even without some businesses opening back up.

He talks about where the recovery came from, the producer or the consumer. Jerry talks about his faith and how God created us to be producers rather than consumers.

Jerry talks about what parts of the market are doing well and what parts are still struggling a bit.

Jerry talks about the coming election and how he thinks this will have an impact on the economy.

Here are some questions we answered from our callers on todays program:

My oldest son is starting college. My in laws started a savings fund for him with 30K in it. Should we be paying as much as we can out of pocket to save the money for later or use the money now?

I dont use credit cards too much. I opened a secured card a few months ago. My credit line went up and my score dropped 20 points. How can I get it back up?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion!Remember that its your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

Once upon a time there was a rebellious drummer who insisted on breaking all the rules. As you might expect, things didn’t turn out well for him, there were serious re-percussions.

Okay, pun intended, but usually there are consequences when you break the rules, especially those involving money. Today, Kingdom Advisors President Rob West has a list of financial guidelines you should stay within, then it’s your calls at 800-525-7000.

Live on less than you earn. If you don’t there’s no way to save and you’ll almost always run up debt.

Buy term life insurance to protect your loved ones should something happen to you. Avoid mixing insurance with investments, as you do with whole life policies. Take the difference between term and whole life premiums and invest it separately.

Make it a point, at least once a year, to request rate reductions if you’re carrying debt. You can sometimes have your credit card interest rate lowered by making a simple phone call.

Ignoreinvesting experts on TV, especially if they sing the praises of an individual stock. But at the same time keep most of your investments in stocks until you’re within 10 years of retirement.But not individual stocks instead, invest in mutual or index funds that cover the market as a whole. Assessing the profitability of single companies is too complicated for the average investor.

Buy cars for the right reason, reliability and fuel efficiency, not to show off to the neighbors.

Don’t touch your retirement savings. Throughout your working years, there will be countless times when it seems like a good idea to tap into your 401k or IRA. It almost never is. Instead, work as hard as you can to build an emergency fund of 3 to 6 months living expenses.

he more you can avoid advertising the less likely you’ll be to make impulse purchases. Most of it is designed to make you buy things you don’t need with money you don’t have.

Look for hobbies that have little or no ongoing costs. An example might be teaching yourself how to play a musical instrument or taking a class on building a website or cooking.

Don’t gamble. That means not playing the lottery. You have better odds of being hit by lightning twice than having your picture taken with that big check.

Here are some questions we answered from our callers on today’s program:

I have a credit card that has 85K debt. I have 4K in savings and I am unemployed. Should I take money from my savings and try to start paying off the debt?

What is the real advantage of a savings account specifically for college?

Is there any way to hold property in a 401K status?I have a 20-year mortgage that I pay biweekly. They told me I might save a year if I continue doing this. What is the best way to pay it off quickly?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

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 at the top of the page.

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

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

Once upon a time there was a rebellious drummer who insisted on breaking all the rules. As you might expect, things didnt turn out well for him, there were serious re-percussions.

Okay, pun intended, but usually there are consequences when you break the rules, especially those involving money. Today, Kingdom Advisors President Rob West has a list of financial guidelines you should stay within, then its your calls at 800-525-7000.

Live on less than you earn. If you dont theres no way to save and youll almost always run up debt.

Buy term life insurance to protect your loved ones should something happen to you. Avoid mixing insurance with investments, as you do with whole life policies. Take the difference between term and whole life premiums and invest it separately.

Make it a point, at least once a year, to request rate reductions if youre carrying debt. You can sometimes have your credit card interest rate lowered by making a simple phone call.

Ignoreinvesting experts on TV, especially if they sing the praises of an individual stock. But at the same time keep most of your investments in stocks until youre within 10 years of retirement.But not individual stocks instead, invest in mutual or index funds that cover the market as a whole. Assessing the profitability of single companies is too complicated for the average investor.

Buy cars for the right reason, reliability and fuel efficiency, not to show off to the neighbors.

Dont touch your retirement savings. Throughout your working years, there will be countless times when it seems like a good idea to tap into your 401k or IRA. It almost never is. Instead, work as hard as you can to build an emergency fund of 3 to 6 months living expenses.

he more you can avoid advertising the less likely youll be to make impulse purchases. Most of it is designed to make you buy things you dont need with money you dont have.

Look for hobbies that have little or no ongoing costs. An example might be teaching yourself how to play a musical instrument or taking a class on building a website or cooking.

Dont gamble. That means not playing the lottery. You have better odds of being hit by lightning twice than having your picture taken with that big check.

Here are some questions we answered from our callers on todays program:

I have a credit card that has 85K debt. I have 4K in savings and I am unemployed. Should I take money from my savings and try to start paying off the debt?

What is the real advantage of a savings account specifically for college?

Is there any way to hold property in a 401K status?I have a 20-year mortgage that I pay biweekly. They told me I might save a year if I continue doing this. What is the best way to pay it off quickly?

Ask your questions at (800) 525-7000 or email them [email protected]. Visit our website atmoneywise.orgwhere you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion!Remember that its your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.