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3 Ways to Honor the Lord with Your Wealth

There is clear instruction to honor the Lord with your wealth in the scriptures.

In Proverbs 3:9-10 we find this command: “Honor the Lord from your wealth and from the first of all your produce; so your barns will be filled with plenty and your vats will overflow with new wine.”

In our finances, we are expected to give our BEST and FIRST to God! God commanded the nation of Israel saying, “You shall bring the choice first fruits of your soil into the house of the Lord your God” (Exodus 23:19a) and when detailing the offerings that went toward supporting the priests He says, “You shall give him the first fruits of your grain, your new wine, and your oil, and the first shearing of your sheep” (Deuteronomy 18:4).

We are to honor the Lord with all that we have. How we behave with our finances does a lot to reveal our heart toward God. Jesus said, “…for where your treasure is, there your heart will be also“. ~ Matthew 6:21

How Do You Honor the Lord With Your Wealth?

How do we accomplish this?

We are exhorted to trust Him.

We are instructed in verse 5 of Proverbs 3 to “trust in the Lord with all [our] heart and do not lean on [our] own understanding”. Trusting God is the first step in honoring Him – this is true in salvation, finances and all other affairs of life. According to Romans 4:3 (quoting Genesis 15:6), this is what pleased God about Abraham.

Often times when we falter in our faith, we don’t realize it is due to unbelief, or in other words, a lack of trusting in God. When it comes to our finances, this can be seen by our dependence on money to ‘save’ us from trouble or blaming our lack of money on our troubles.

We have to remember that no matter what life may bring us, God is our source. He is the one who brings prosperity and opportunity to us, and as His children, He promises to supply our needs because He is a caring Father. Matthew 6:25-35

“For this reason I say to you, do not be worried about your life, as to what you will eat or what you will drink; nor for your body, as to what you will put on. Is not life more than food, and the body more than clothing? Look at the birds of the air, that they do not sow, nor reap nor gather into barns, and yet your heavenly Father feeds them. Are you not worth much more than they? And who of you by being worried can add a single hour to his life?

And why are you worried about clothing? Observe how the lilies of the field grow; they do not toil nor do they spin, yet I say to you that not even Solomon in all his glory clothed himself like one of these. But if God so clothes the grass of the field, which is alive today and tomorrow is thrown into the furnace, will He not much more clothe you? You of little faith! Do not worry then, saying, ‘What will we eat?’ or ‘What will we drink?’ or ‘What will we wear for clothing?’ For the Gentiles eagerly seek all these things; for your heavenly Father knows that you need all these things.

But seek first His kingdom and His righteousness, and all these things will be added to you. “So do not worry about tomorrow; for tomorrow will care for itself. Each day has enough trouble of its own.”

In times of doubt, we must cry out to the Lord as the man who needed Jesus’ help to heal his son in Mark 9:24 “I do believe; help my unbelief.”

We are also expected to be generous and ready to share.

Proverbs 11:24-29 tells us:

“There is one who scatters, and yet increases all the more, and there is one who withholds what is justly due, and yet it results only in want. The generous man will be prosperous, and he who waters will himself be watered. He who withholds grain, the people will curse him, but blessing will be on the head of him who sells it. He who diligently seeks good seeks favor, but he who seek evil, evil will come to him. He who trusts in his riches will fall, but the righteous will flourish like the green leaf. He who troubles his own house will inherit wind, and the foolish will be servant to the wise-hearted.”

Also in 1 Timothy 6:17-19, we find this instruction:

Instruct those who are rich in this present world not to be conceited or to fix their hope on the uncertainty of riches, but on God, who richly supplies us with all things to enjoy. Instruct them to do good, to be rich in good works, to be generous and ready to share, storing up for themselves the treasure of a good foundation for the future, so that they may take hold of that which is life indeed.

It is amazing to see this principle played out over and over again in our lives. If you are generous even when you have little, God seems to bless your finances to be able to do more than most who have more money than you.

We constantly hear and read about people who recovered from massive amounts of debt while staying faithful (and in many cases increasing) to giving. In fact, most respected financial advisers (many of whom do not believe God’s word) will tell their clients that giving has to be an integral part of their lives in order to be successful financially.

We should be fair in our dealings with others.

In verses Proverbs 3:27-28 we find the following instruction,

“Do not withhold good from those to whom it is due, when it is in your power to do it. Do not say to your neighbor, ‘Go, and come back, and tomorrow I will give it,’ when you have it with you.”

As believers, we are called to an even greater level of consideration as we contemplate Christ’s goodness towards us and His example. Philippians 2:3-4 states:

“Do nothing from selfishness or empty conceit, but with humility of mind regard one another as more important than yourselves; do not merely look out for your own personal interests, but also for the interests of others.”

So in doing all of these things we will begin to honor the Lord with our wealth; which, according to verse 10, will lead to God sustaining us, causing us to be prosperous (cf Luke 6:38, Matthew 6:33) and satisfied (Philippians 4:11-13)!

For more on developing a biblical view of wealth, see our previous article here: http://knsfinancial.com/2010/01/10/wealth-from-the-bible/

Photo for social media by Suphakit 73 @ FreeDigitalPhotos.net

Setting Our Goals Based On God’s Word

By // by Khaleef Crumbley

Since we are at the beginning of a new year, many of us will take the time to reflect on the past year to look on our accomplishments and failures, as well as make plans and set goals for the next year. For the Christian however, we must not only consider the goal but we must look at what motivates us.

Setting Our Goals Based On God’s Word

The Bible makes it clear that it is not enough to think about what we do, but we are to think about who we are – our character, our desires, and our passions. God is much more interested in who we are than what we do; because who we are should ultimately control our actions.

Many times when the Bible gives a command, or we are exhorted to do something, we are usually given the motivation or reward behind those actions. Paul said in 2 Corinthians 5:14 that he was constrained (or controlled) by the love of God. He later told the Philippians that he, “press[ed] on toward the goal for the prize of the upward call of God in Christ Jesus“. There was something that was motivating him – the eternal promises of God, and the love of Christ – it wasn’t just about checking off a list of achievements!

Ephesians 4:25-32: A Model Of Biblical Goal Setting

If we were to go through the Bible and examine all of the key commands and admonishments, and take a look at the promises or even logical reasoning and motivations for them, this article would turn into book; so instead, I want us to look at one passage of Scripture to see how our behavior (in essence, our goals) should be directly tied to a strong and godly motivation.

Therefore, laying aside falsehood, speak truth each one of you with his neighbor, for we are members of one another. 26 Be angry, and yet do not sin; do not let the sun go down on your anger, 27 and do not give the devil an opportunity. 28 He who steals must steal no longer; but rather he must labor, performing with his own hands what is good, so that he will have something to share with one who has need. 29 Let no unwholesome word proceed from your mouth, but only such a word as is good for edification according to the need of the moment, so that it will give grace to those who hear. 30 Do not grieve the Holy Spirit of God, by whom you were sealed for the day of redemption. 31 Let all bitterness and wrath and anger and clamor and slander be put away from you, along with all malice. 32 Be kind to one another, tender-hearted, forgiving each other, just as God in Christ also has forgiven you. ~ Ephesians 4:25-32

In Ephesians 4:25-32, we are given a list of God’s goals for our lives. Even the specific motivations given for these goals have at their foundation a deeper goal – to “not grieve the Holy Spirit of God…” (verse 30). In an overall sense, we are to do this by following what is laid out in Ephesians 4:22-24 – that we should “lay aside the old self”, be renewed in our way of thinking, and then put on a new way of living (the entire second half of the book of Ephesians is about our walk – how we conduct ourselves in the world). These 3 steps provide us with an outline for our worthy walk (verse 1).

So in each of these commands (in verses 25-32), we are admonished to stop doing something, replace that sinful behavior with something else, and then we are given the reason or motivation for this change. So we can see from this list of imperatives that the motivation is just as, or perhaps even more, important than the actual goal.

We will look at each one of these briefly to show why and how we can make these goals a part of what we’re trying to accomplish in our lives, as well as applying this way of thinking and living to all goals that we want to set:

Goal #1 – Being Truthful (Eph. 4:25)

The Sin To Put Off – Therefore, laying aside falsehood

The Virtue To Put On – Speak truth each one of you with his neighbor

Our Motivation – For we are members of one another

Here we are given the command to lay aside falsehood. Not only does this refer to outright lying, but it also speaks of deceitful motives and actions (making false excuses, breaking promises, etc). Every day our goal needs to be putting off lying and all sorts of falsehood.

The great thing about this section is that we are not simply given a command and then left to figure the rest out on our own. Paul next instructs us to speak the truth with our neighbors (cf. Zechariah 8:16-17). By practicing being truthful, we will be in a better position to overcome the temptation to lie when it comes around. We can more easily put this sin to death because we are now practicing godly behavior in its place!

Of course we are not able to do any of this without the power of God working within us (cf. Eph. 1:19-20, 3:20), but that is beyond the scope of this article.

So after Paul gives us the command to stop being deceitful, and then encourages us to replace that with the characteristic of being consistently truthful, he then shows us why we need to do this. The motivation for these goals is the fact that “we are members of one another“. Now, we can’t unpack all that this means here, but it is enough to say that we are all members of the body of Christ (1 Corinthians 12:12), we are called to love each other (1 John 3:11-5:4), and we have all been adopted into the family of God (Romans 8:12-17).

So, our goal is the laying aside the old man’s sinful propensity to lie and putting on the character of truthfulness. This is to be motivated by the fact that we are now members of one another, through Christ, and we are empowered by the Holy Spirit to accomplish this.

Goal #2 – Dealing With Anger In A Biblical Manner (Eph. 4:26-27)

The Sin To Put Off – Sinful Anger (or allowing righteous anger to lead to sin)

The Virtue To Put On – Examining the reasons behind your anger, and getting things right (immediately)

Our Motivation – Do not give the devil an opportunity

It would seem here that Paul is making the case for a righteous anger – hating immorality, injustice, blasphemy, and and sin in general – as Jesus did (cf. Matthew 21:12, Mark 3:5, and John 2:15 – note that the temple cleansings recorded here are 2 separate events [John at the beginning & Matthew at the end of His earthly ministry], which indicates that this wasn’t just a rash reaction). Again, this one verse can (and should) take up and entire sermon, so we don’t have room to exegete every detail. But I’ll share a few of my observations…

First, even if this is discussing righteous anger (sometimes referred to as righteous indignation), the verse still indicates that even righteous anger can lead to sin and bitterness, and needs to be dealt with in the proper way once it is identified. The second thing to note is that if righteous anger can lead to bitterness, then it’s a given that unrighteous anger (that which comes from impatience, discontentment, pride, or a lack of faith among other things) can lead to bitterness and other kinds of sin if it isn’t confessed and put to death immediately. In either case, we are simply told that we are not to sin in response to our anger.

Instead of allowing our anger to lead to sin, we are to deal with the issue and get it right as soon as possible. If you become angry with a person, then you are to work things out with them as soon as you are physically able. Even if you are not able to before the literal setting of the sun, you are to forgive them (in your heart) as soon as possible, and then work through it with them whenever time allows. Allowing anger to go unchecked will cause bitterness to settle in your heart and lead to all kinds of sin (Hebrews 12:15).

By examining our heart for unchecked anger (and even frustrations) and attempting to get those things right as soon as possible, we will avoid “giv[ing] the devil an opportunity”. This literally means to not give the devil “a place” (it’s translated “leave room” [NASB] in Romans 12:19), and I think it really shows just how subtle he can be when our anger is not dealt with biblically and immediately. When we don’t follow this command, we are actually giving the devil a place from which he can more easily entice us to sin.

So, our goal is to be sure that we handle both righteous and unrighteous anger in a biblical manner. We do this by constantly examining our reactions and our heart to ensure that any anger is dealt with immediately. We do this because we are motivated by the fact that not doing so will give the devil “a place” or “an opportunity” to tempt us to sin.

Goal #3 – Working With Integrity (Eph. 4:28)

The Sin To Put Off – Stealing

The Virtue To Put On – Hard Work

Our Motivation – So that [you] will have something to share with one who has need

The command here is pretty simple, “he who steals must steal no longer“! Stealing here refers to the act of taking anything that doesn’t belong to you. It doesn’t just mean physical possessions, but can extend to time, money (many do this by not working as hard as they should for their employer), mismanaging something over which you were made a steward, and countless other areas. God is very clear and direct about this…if you are stealing in any form, stop it!

Instead of stealing to provide for ourselves and our families, we are to engage ourselves in honest, hard work. Hard work is the primary means by which we are to support ourselves (cf. 2 Thessalonians 3:6-15 esp. 10, and 1 Timothy 5:8), and it is the perfect way to put off the temptation to steal. Stealing really does show a lack of faith in God’s ability to provide, and it is something that we all need to root out of our lives. Just because you aren’t taking clothes from the local department store doesn’t mean you aren’t stealing.

Even though we talked about hard work being the primary means by which we are to support ourselves, God gives us another motivation for making this a goal: We are to work hard so that we will have something to share with one who has need! We saw this type of attitude at work when the church was first being established (Acts 2:44-45, 4:32-37, 20:33-35), and it is how we are to be toward each other today (cf. 1 Timothy 5:3-16 esp. 9-16).

I am sure that hard work is a part of many goals/resolutions this year, but we should really dig deep and ask ourselves what the motivation is behind that goal. Do we just want to be rich so we can feel secure (1 Timothy 6:17-19, Matthew 6:33)? Are we seeking wealth because we think it (or what we can buy) will make us happy (Mark 8:36-37)? Are we trying to work hard for a promotion so that men will esteem us because of our title/position (Galatians 1:10)?

So even as we evaluate a noble goal such as working hard and refusing to steal, we have to make sure that part of our motivation (see Eph. 6:5-8 for another part) ought to be the fact that we want to have something to share with one who has need. Our love for Christ and our brothers & sisters should be what propels us to strive in this area daily.

Goal #4 – Godly Communication (Eph. 4:29)

The Sin To Put Off – Unwholesome Speech

The Virtue To Put On – Wise & Edifying Conversation

Our Motivation – So that it will give grace to those who hear

Now Paul moves on to our speech. The command is that we not let any “unwholesome” words come our of our mouths. The Greek word for “unwholesome” literally means “rotten” or “foul”, and gives the idea of spoiled, putrid meat. As Christians, we are not to allow these rotten, corrupt words come out of our mouths. In Matthew 15:18-19, Jesus said…

“But the things that proceed out of the mouth come from the heart, and those defile the man. For out of the heart come evil thoughts, murders, adulteries, fornications, thefts, false witness, slanders.”

This shows us that the things that come out of our mouths are an accurate representation of what is going on in our hearts! James 3:6 tells us that the tongue “…defiles the entire body“. The fact that we now have a new heart means that these evil, corrupt, rotten words should not so easily come out of the mouths of Christians (cf. James 3:3-12, esp. 9-12).

Instead of the rotten or foul speech that was a part of our “old man” (Colossians 3:5-8), our goal should be the consistent use of edifying words (words that build others up). Our speech should be characterized by encouraging, helpful, instructive, beneficial words – this should be true even when we must point out sin or correct wrong thinking/doctrine (Proverbs 15:23, 25:11-12).

The motivation that we are given for changing our speech is the benefit that it will provide to others. Paul says that we are to cultivate a heart and tongue that works to edify, “so that it [our speech] will give grace to those who hear“. The idea of our speech being graceful calls to mind the command found in Colossians 4:6, “Let your speech always be with grace, as though seasoned with salt, so that you will know how you should respond to each person“.

The fact that we now have the power to put on the new man, and speak words that can minister grace to others should motivate our goal to put away unwholesome words and instead, edify one another.

So again we are given a command/goal of putting off and putting on, and we are also given a motivation for that goal. This time, the way in which we communicate with others is in view.

A Summary Of Our Goals/Commands (Eph. 4:31-32)

Paul then gives a summary of all the changes that occur once we are rescued from the kingdom of darkness (Eph. 2:1-7). He first mentions all of the things we are to put aside, then he lists the things we should do. Instead of just firing off a list of commands, he gets more at the root of what causes the actions he mentioned earlier:

Let all bitterness and wrath and anger and clamor and slander be put away from you, along with all malice. 32 Be kind to one another, tender-hearted, forgiving each other, just as God in Christ also has forgiven you. ~ Ephesians 4:31-32

These are things that can be the underlying cause of some of the sins which he gave more attention in the previous verses. So the goal to avoid all bitterness, wrath, anger, clamor, slander, and malice should lead to putting off falsehood, sinful anger, stealing, and unwholesome words. The same is true with being kind, tender-hearted, and forgiving others as God has forgiven us.

We are given an underlying motivation for not only this summary section, but all of the commands/goals listed in the larger section: “Do not grieve the Holy Spirit of God, by whom you were sealed for the day of redemption.” ~Ephesians 4:30

Our ultimate motivation for putting off these sinful behaviors is the fact that the Holy Spirit of God will be grieved if we don’t. So, on top of all the other motivation that we are given here, knowing that the Holy Spirit will be grieved when we continue in the sinful behaviors from which we have been saved and freed, is what should cause us to put these sins to death!

Following A Biblical Model For Setting Goals

In this passage we see a wonderful model for setting goals. Not only is the end result important, but we also need to make sure that we have a godly motivation.

Having A Biblical Motivation

Of course, these and other biblical goals should come first and we should be motivated by all of the exhortations, promises, and warnings found in scripture. We aren’t just following a list of dos and don’ts, trying to earn favor with men or even God by doing certain things, but we are actually “work[ing] out our salvation with fear and trembling” Philippians 2:12. We are compelled by the love of Christ to live out the faith which is within us.

We are told to, “be holy, for [God] is holy” (1 Peter 1:16), and we are even exhorted to let our focus on the future promises of God impact our behavior/mindset here on earth (2 Peter 3:10-18). Motivation is everything to God. He looks at the heart, rather than the outward appearance (1 Samuel 16:7), which is why being merely a hearer of the word is useless, and even sinful (James 1:22-27).

Examining Our Hearts Is The Key: Seeking To Glorify God

Before we set any goal, we need to examine our heart and our motives to ensure that we are seeking to honor God. If your goal is to lose weight, make sure you are doing it to honor God with your body (which is really His – 1 Corinthians 6:19-20), rather than to turn heads when you walk down the street.

If your goal is to save money, check your heart to make sure that you are not looking to a huge savings account or wealth in general to provide you with security, but that instead you gain your motivation from the command found in 1 Timothy 6:17-19!

There are many other common goals that we may set for ourselves, but when we examine our motivation, very little (if any of it) has to do with bringing glory to God. We are told in 1 Corinthians 10:31, that everything we do, no matter how mundane, should be done in order to bring glory to God:

Whether, then, you eat or drink, or whatever you do, do all to the glory of God.

If our goals and motivations do not line up with this principle, then we need to do some serious heart-searching and prayer in order to get our goal in line with God’s will. Setting goals, no matter how noble and praise-worthy from a human standpoint, can easily be worthless at best, or even sinful in God’s eyes.

Reader Questions:

How easy do you find it to set goals without considering God’s will?
Why is it so rare to find the type of godly goals mentioned here or in other passages, in our own list of goals/resolutions?
How often do you examine your goals to see if your motivation is godly or just a part of you seeking your own glory?

7 Ways Single Parents Can Save Money

By // by Khaleef Crumbley

Raising children is expensive and when you’re a single parent, it can seem downright impossible. Figuring out how to pay your bills while still ensuring that your child’s (or children’s) needs are met can be difficult. It is possible with a bit of planning.

You can pay your bills, take care of your kids and still have some money left over at the end of the month. Here are 7 ways in which you can save money.

Create a Budget

If you have no idea how much of your money is going where every month, your spending can quickly get out of hand. Sit down and create a monthly budget. Figure out how much you pay for fixed expenditures (such as rent and car insurance) and how much you want to stick within on other necessities, such as food and other flexible expenditures.

Once you figure these numbers out, it will be much easier to stick them, which can seriously cut down on impulse purchases. It can also be beneficial to balance your checkbook every month. This can help to make you accountable for all of your purchases and allow you to practice more conscious spending habits.

Great articles on how to create a household budget:

How to Create a Budget – Even If You Suck at Budgeting

How to make a family budget – Today’s Parent

Shop Used

Buying new can eat up a large portion of your finances, whether it’s clothing, a car, or furniture. Rather than trying to figure out how you can afford new, shop used.

Consignment sales and thrift stores are a great way to stretch your clothing budget. Not only can you find gently used (and sometimes new) clothing at cheaper prices, you can also sell the clothing you no longer wear. These types of stores are also great for buying other household goods.

There are plenty of websites dedicated to selling used items, allowing you to save a significant amount of money.

Compare Prices

Before you make a purchase, check to see if there is a cheaper price elsewhere. Thanks to the internet, comparison shopping has never been easier. You can even check for coupon codes for your chosen retailer.

What’s more, many stores will price match, whether it’s honoring their online prices in store or matching a competitor’s price. In some cases, you can still use coupons as well.

Join a Savings Club

Many grocery stores offer free savings clubs, which are designed to encourage your shopping loyalty. With a loyalty card, you can gain access to special sale prices and coupons. By planning your shopping trips around the sales of the week, you can definitely save money – as much as $40 or more per trip.

You don’t have to limit yourself to one store. If you shop at multiple stores that offer savings clubs, sign up for each store you frequent.

Pay Bills on Time

When you’re on a tight budget, it can be tempting to let some bills slide but, in doing so, you could be racking up late fees and other penalties. When you do get around to paying your overdue bills, you’re paying more than you would have initially. If possible, set up automatic payments for things such as your mortgage.

When paying your credit card bill, aim for paying about $50 to $100 over the minimum balance each month. And make sure you leave approximately 5 to 7 days for your payments to process. You should also familiarize yourself with any fees that may be associated with your bank, your credit card or your cell phone. Call each company and ask about any fees you are unsure of.

Shop around for banks that charge no fees, or at least less than what you are currently paying. You may even be able to get your credit card company to lower your interest rate.

Some parents may find themselves in a shortage of cash. Here are some helpful articles to help with that situation:

Should you borrow from family or friends? – Money Advice Service

Installment Loans with Bad Credit up to $5,000 – I Need a Loan

Plan Your Meals

While it can take some time, sitting down to plan your meals for the week can help you to then plan your shopping trips. This can help you to stick to a list and avoid buying what you don’t need.

Planning can also help you to make the most of what buy. For instance, if you roast a chicken, you can make chicken salad out of the leftovers, and have lunch ready for the next day or so. The leftovers also make great sack lunches for the kids when they go to school, rather than having them buy lunch.

Another trick to help you save money is to double your favorite recipes. This way, you have one ready for dinner on the night you make it and you can freeze the second one to eat the following week. This will allow you to take advantage of sales and can help you to save time on a night when you may not be able to cook.

Start a Savings Fund

One of the biggest keys to help you save money is to actually set money aside into a savings fund. Allot what you can each month, even if it’s only $20. Over time, this money can really add up. You are not limited to a savings account. You can set the money aside into a college savings fund for your child or into a retirement account. Use whichever method works best for you and your family.

Raising your kids on one income sounds like a frightening concept but, it is entirely possible. Taking the time to sit down and plan can go a long way in making sure that the bills are paid and everyone in your household is comfortable.

[This post was brought to you through a partnership with Sandy Matthews.]

Reverse Mortgage FAQs

By // by Khaleef Crumbley

As more and more people are choosing reverse mortgages, there are several questions which come up. While many of these questions will be specific to your case, there are others which apply to almost every reverse mortgage application out there. With that in mind, here are the more important reverse mortgage faqs you should ask.

Reverse Mortgage Faqs

1) What a Reverse Mortgage?

Reverse mortgages are loans for seniors which allow them to tap into the equity they have built up in their homes. Unlike traditional mortgages or home equity lines, the borrower does not need to make a monthly payment. Instead, all they need to do is to pay the property taxes, insurance, and utility costs for the home.

Another condition of a reverse mortgage is that it must be the borrower’s primary residence. In addition, these loans are only made available to seniors over the age of 62. Now, these mortgages are available across the country, but you probably want to find a local and reputable lender to walk you through the application process.

2) Who Owns the House?

Like traditional mortgages the home is still owned by those residing there – the bank just places a lien on the property. However, you will want to read the terms of the loan agreement, especially the amortization schedule when the loan extends to year 10 or 15, or longer.

3) Why Would Someone Get a Reverse Mortgage?

For many people, their home is the most valuable asset they own. In addition, today’s seniors have had to live through some of the most tumultuous economic periods in our history.

Granted, when times were good, they were very good. However, when times were bad, they were very bad. In addition, there is the changing employment picture. As such, many seniors lack the savings needed to enjoy their retirement.

Enter reverse mortgages, which have become a popular option to help seniors make ends meet during their retirement. Not only do these mortgages help to freeze monthly mortgage payment, but they also give the borrower the ability to access the equity they have built up in their homes.

4) What Are the Qualifications?

First, you must be over the age of 62. In addition, you will need to show that have the income to pay your homeowner’s insurance, property taxes, and utilities. Many reverse mortgages will also require that you will need to properly maintain the house.

Lastly, a reverse mortgage is only for your primary residence. While some private-label reverse mortgages might cover vacation homes, the Federal Housing Administration (FHA) variety of reverse mortgages must be for where you live.

5) What are the Risks?

As most reverse mortgages are insured by the FHA, then tend to be safe. You want to make sure the loan you are getting complies with the FHA’s rules.

If not, then you will want to talk to another lender.

6) Will My Property Qualify?

The list of eligible properties includes everything from single-family homes, multi-family homes (however, the borrower must live in one of the units), as well as certain condos and manufactured homes.

If you are not sure if your property will qualify, then you need to talk to your loan counselor.

7) How Much Can I Borrow?

The answer to this question largely depends on where you live. However, the national loan limit was raised this year to $636,150.

Keep in mind that just because the loan limit is set at this level does not mean you can borrow the entire amount. Under the rules of reverse mortgages, you will need to pay off your existing loan and generally there is a limit based on the home’s actual value.

8) Can the Bank Foreclose?

As long as you follow the terms of the loan, then you won’t have to be concerned about foreclosure risk.

Just remember you need to ensure the home remains registered as your primary residence and that you will need to keep up the payments on taxes, insurance, and utilities.

9) How is a Reverse Mortgage Repaid?

You loan will come due as soon as you no longer live in the home. As such, you will need to plan for repayment at this time.

The way it works is simple. You either sell the home and the lender will be repaid at closing, or you will need to notify the bank of your change of address and then make plans to repay the loan at that time.

4 Creative Ways of Financing Your Startup

By // by Khaleef Crumbley

Every time I run into an old acquaintance or even look on social media, I see someone else who has decided to start a business. There are around 1 million people every year who decide to take their skills, talents, and passions and jump into the scary world of entrepreneurship.

If you find yourself becoming a part-time or full-time business owner, you may find yourself in need of financing.

The Necessity of Financing Your Startup

Not everyone who starts a business will need to raise a lot of capital before getting started. For some, the nature & structure of the business will mean that little investment is needed – many people are able to “set up shop” virtually and use profits to fuel growth.

However, many will need to raise a significant amount of money before being able to sell their goods or services. There are a lot of things to consider when it comes to starting a business – legal matters (licensing, registration, permits, etc.), advertising, inventory, salaries, lease costs, taxes, insurance, customer service, online presence, and many other things that may be specific to your industry – and many of those things will require a serious investment in order to set them up properly.

Even though it’s up to you to determine how much and how early you will need to invest, allow me to give a word of advice: Don’t go the cheap route on things that can save time or money in the long run! You want to set your business up properly, legally, and efficiently, and while you may be able to cut costs here and there, being too “cheap” in these areas will only lead to regret down the road.

The Struggles of Financing Your Startup

Even though you may have a great vision for your business, not having the capital needed to get if off the ground can stop you in your tracks! There are a few ways to get the money you need that will require some patience and sacrifice. You could:

Work for It

If you are able, a second job is a great way to build up the funds you’ll need to get your business off the ground. This is a huge sacrifice if you have a family, and it will draw you away from the time you are spending on business planning. If you are able to juggle your responsibilities, the short-term job could get you on your feet faster.

Ask for Help

Getting investors on board with your vision saves on the stress of a second job, but can be difficult for those who don’t necessarily like selling themselves. In the last few years, sites like Go Fund Me and kickstarter have been really popular for different projects.

Also, the people who know you best may be the ones who are most financially supportive in getting your business off the ground because they already know and trust you and believe in what you are doing.

Borrow the Money

On top of trying to seek out investors who would take a stake in the company in return for seed money, you can also look for banks, companies, or individuals who are willing to simply loan you to money in return for a set interest rate.

Lending Club and Prosper are two services that link up borrowers with investors (they are investing in the loan, not your business), offering lower borrowing rates by cutting out some of the overhead needed by traditional banks. Many people may choose to borrow the money to finance their startup by using credit cards. According to the Small Business Association, over 65% of small businesses use credit cards on a frequent basis!

A major difference between getting an investor and simply borrowing money is that the one who loans you the money usually expects repayment to start within a month or two of the loan; whereas, an investor is usually willing to wait for multiple years before expecting a return on their investment.

Sell Your Valuables

Another option is to sell things you have to get the money you need for your endeavor. A lot of us have items that are of value to someone else that we would gladly part with in order to start a business. It’s time to let some of those things go!

We may not always want to part with expensive items or with belongings that could be considered “status symbols”, but when it comes to being able to finance your business it still may be worth it to sell your watch, to avoid paying interest or having to share your profits with someone else down the line.

Remember, you aren’t trying to find a way to make sustainable income in this stage – that’s the purpose of the business, right? – you are just trying to find a way to get your business off of the ground. In those situations, you have to ask yourself if you’d rather have that item or a business that has a good foundation and is growing.