KNS Financial

Personal Finance From a Biblical Perspective

Sponsored Video – When Credit Cards Can Help You

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The following post has been sponsored by Capital One, but all thoughts & experiences are my own. In fact, the great thing is that I’ve been a very happy customer of Capital One for years – with my business account (the account/card mentioned in the video below)!

As most of you already know, I’m no stranger to expensive car repairs. Keep in mind that anything over about $150 is expensive in my mind (one of the consequences of being broke and in debt). Well, we had to spend another $600 recently – this time on our SUV. Since we are trying to use every extra penny to pay off our debt and also build up an emergency savings account, we were putting off the repairs until they were absolutely necessary.

We had to get the air temperature door actuator replaced on our Ford Explorer – apparently, this is a common problem. We were originally told that it would cost about $750; mainly due to the labor involved – the center console and part of the dashboard had to be removed. Going through the winter without any heat is difficult in New Jersey, so once the temperature dropped down to the low 20s consistently (hitting the teens on a couple of days), we knew we couldn’t put it off any longer.

We have a credit card that is dedicated for car repairs. If our repair bill is over $299, then we have 6 months to pay off the balance before any interest is charged. So, in this case, our credit card has saved us from prematurely depleting our emergency fund or taking from our monthly budget, while allowing us to put heat in our vehicle!

We definitely plan to pay off the credit card before the 6 months are up – something that we have done each time we’ve used it – so we aren’t expecting to pay any interest for this loan. If we aren’t able to save enough in the 6 months by reducing our expenses (not likely since we don’t have many variable expenses), then we will still be in a better position to take money from our savings.

If we weren’t in debt, we would probably use credit cards for everything. We already use it for any online purchase (for security) or any other payment where we aren’t completely comfortable (like some gas stations, restaurants, etc.). Between the added security, the rewards, and the possible cash back, I am a big fan of credit cards.

Now obviously, this love only goes as far as the benefit gained combined with the responsibility of the user. To be fair, this can be said about most good things. Too much or a misuse of a good thing can easily make it detrimental. Someone once said that a credit card is like fire…useful, but handle with care.

photo credit: freedigitalphotos.net

The Importance Of Integrity In The Workplace

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A while back, as I was doing my daily bible reading, I came across this passage about integrity:

You shall not have in your back differing weights, a large and a small. You shall not have in your house differing measures, in large and a small. A full and fair weight you shall have, a full and fair measure you shall have, that your days may be long in the land that the Lord your God is giving you. For everyone who does these things, everyone who acts unjustly is an abomination to the Lord your God. – Deuteronomy 25:13-16

God expected the Israelites to operate with honesty and integrity both in trade and business. The picture here is of a merchant in the marketplace who, as he conducts business, carries false weights and scales, which will measure things in his favor and allow him to cheat his customers. This is similar to someone in modern times gambling with weighted dice.

Integrity - Balanced Scales

The Bible has a lot to say about having integrity, especially as you operate your business. As you can see from the verses above, and the many more that I didn’t even enclose, how we handle our business is very important.

We need to do everything with integrity and honor and honesty. In fact, the measure of success when it comes to how we deal with others – especially in business or financial matters – is not whether we were profitable, able to get our way, or even if we were able to make someone happy, but it’s if we operate with honesty and integrity.

Even if we have a business that fails, or we try an endeavor and it doesn’t work out, we can know it was a success in God’s eyes, if we operate with integrity, honesty, and godly character.

[Question: Does hard work show a lack of faith?]

Because most people in this country don’t own their own business, but in fact, work for someone else, we may feel as though these verses don’t apply to us. However we must realize that we do own a business in a sense – we own our labor, our intellect, and our abilities, and we are to use all these things with integrity for our clients. It’s just in many cases, we call our clients our boss, manager, or supervisor.

I think we have to really look at how we approach work and other things that we do in life. We need search our hearts and make sure that we are operating with integrity in all that we do (even if it causes us to lose favor with a boss that is asking us to bend the rules or fudge numbers). If we can do that then we know that we have been pleasing to God.

There’s a lot more that can be said about this, and most likely I will write about it in the future, but I just wanted to put that quick thought out there as it definitely hit me hard as I read it and thought about the consequences.

photo credit: freedigitalphotos.net

Discovering the Right Business for You

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Do you think much about going into your own business one day? This is just a guess on my part, but I think most people do. There’s something inside of all of us that wants to step out of our routine and take on the challenge of self-employment. But that brings up the question, what is the right business for me?

The answer to that question could be the difference between the success and failure of whatever business you choose. I think there is a workable business idea out there for everyone of us, it’s just a matter of finding the right one. How do you do that?

Discovering the Right Business

Bring It To God

Prayer doesn’t always bring miracles to our lives, but I do think that enough of it brings clarification. If you seriously want to go into your own business, pray about it. Ask God to reveal to you if a) being self-employed is the right move for you, and if it is, b) what business should you go to?

God doesn’t usually give us direct answers, but I think that He does put a lot of clues in front of us when we ask for His help. So pray hard and often, and then strike out and be ready for whatever revelations you receive.

What Is It That You Like To Do?

The next step is to ask yourself what it is you like to do? Whatever the question is, you should be fully open to the possibility. No matter what it is we do for a living, everyone of us has one or more other things in life that we’re passionate about. Some of those – but certainly not all – could be the basis of your business.

When you become self-employed, doing something you really like to do becomes really important. There will be times in the life of your business when you will want to give up. But when you actually like what you do it’s much easier to continue going forward. Passion also generates creativity, and that opens up new options. What you like to do, you’ll do well, and that will increase your chances of success.

There is an important caveat here however. Not everything that we like to do can be converted into a profitable business, or at least not easily. For example, if you really love swimming, it will be a very difficult activity to monetize unless you have an Olympic gold medal somewhere in your background.

It’s a difficult balance finding a way to mix passion and profitability. But that’s also an excellent place to start.

Identifying Your Talents And Skills

Every one of us have certain talents and skills. Some of them are ones we’ve been using in our working lives already. Others are yet to be discovered. But talents and skills are also a very good place to start looking for business ideas. They can be the building blocks of whatever business you ultimately decide to enter.

As an example, if you’re the go to person at your place of employment for all things computer related, you might be able start a business doing something similar on a retail basis. There are lots of small businesses out there that are struggling with computer issues. If you can get them moving forward, you may have discovered a business niche.

If you are in sales, you have a built-in business skill. Even if you’re not particularly excited about the product you are currently selling, you may be able use your sales skills to sell another product line that you really believe in.

Try this–make an informal resume. It should list only your skills, and not be concerned with previous employment. When you see a comprehensive list of your skill set right front of you, it may help you to get answers as to what type of business you will be well suited for.

If it is possible, the key is to merge your skill set with your passions, and launch your business from there.

Consult With The People Who Know You Best

After you’ve done a good bit of self-evaluation, it’s always best to get an outside opinion. The more you can get, the better. Go to the people who know you well, let them know that you are thinking about starting a business, and that you’d like their opinion as to what type of business you should go into.

Two things will happen here; either they will confirm an idea or two that you have already had for yourself, or they will present you with a new idea you never thought of.

Remember how we started by saying “bring it to God in prayer“? At this point, you’ve prayed about it, you’ve identified your passions and skills, and now you’re getting feedback from people who you trust. The combination of the three will bring you a lot closer to your answer.

Once you have that answer, be ready to run with it. And don’t look back.

photo credit: Freedigitalphotos.net

New Jersey Price Gouging Laws Are In Effect Thanks To Hurricane Sandy

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According to a press release by the New Jersey Office Of The Attorney General (NJOEM), Attorney General Jeffrey S. Chiesa and Governor Chris Christie warned merchants about New Jersey price gouging laws during the State of Emergency declared in reaction to the devastation caused by Hurricane Sandy.

Which Merchants Are Typically Guilty Of Price Gouging?

When a natural disaster – such as a hurricane or earthquake – strikes, a number of retailers will try to take advantage of the victims. However, there are some which seem to be more likely than others. Among the most common offenders are gas retailers, grocers, and taxis.

If you have to visit one of these types of retailers either during or 30 days after the termination of a State of Emergency, be on the lookout for price gouging.

Price Gouging New Jersey

What Exactly Is Considered Price Gouging?

Price gouging is when a retailer unnecessarily, and callously increases their prices during an time of great fear and panic and/or in an emergency situation. This is why you need to engage in hurricane preparedness in advance!

In order to prevent the evaluation of price increases from being subjective, the state has set up precise guidelines in this matter:

The law deems price increases excessive if they are more than 10 percent higher than the price at which a good or service was sold in the usual course of business prior to the State of Emergency; or, if additional costs are imposed by suppliers or certain logistical concerns during the State of Emergency, the increase is more than 10 percent of the amount of markup from cost, compared with the markup ordinarily applied.

What this means is that a retailer is allowed to raise their prices by up to 10 percent during a time of emergency, without it being considered price gouging. However, once those price increases are more than 10 percent higher than the prices before the State of Emergency, that retailer is breaking the law!

If the retailer had to increase their prices more than 10% due to the prices of their supplies increasing, or due to other “logistical concerns” because of the State of Emergency, they will also take into account.

Basically, if it now costs 50% more to ship food to that area, then the grocery stores most likely won’t be punished for raising their prices by more than 10%. We as consumers have to keep in mind the increased costs and labor efforts of the various suppliers and merchants before filing a claim of price gouging.

What Are The Penalties For Price Gouging?

According to the NJOAG website:

Violations are punishable by civil penalties of up to $10,000 for the first offense and $20,000 for the second and subsequent offenses.  Each individual sale of merchandise is considered a separate and distinct event.

Based on these numbers and the fact that each individual sale is treated as a separate violation of the price gouging laws, I can’t see why anyone would want to take part in this practice. The profits that one would gain by engaging in price gouging can’t compare to the penalties that they would face if caught.

Governor Christie had this to say:

During emergencies, New Jerseyans should look out for each other – not seek to take advantage of each other. The State Division of Consumer Affairs is looking closely at any and all complaints about alleged price gouging. Anyone found to have violated the law will face significant penalties.

A.G. Chiesa also issued his own warning:

Retailers should know we will conduct a thorough investigation, including an audit of the merchant’s receipts dating back to before the State of Emergency, to examine each and every complaint… Anyone violating the law will find the penalties they face, far outweigh the profits of taking unfair advantage of their fellow New Jerseyans during a time of great need.

How To Report Price Gouging

If you believe that a business has cheated or scammed you by engaging in price gouging, then you can file a complaint with the State Division of Consumer Affairs by visiting its website, or by calling 1-800-242-5846 (toll free within New Jersey) or 973-504-6200.

photo credit: Freedigitalphotos.net

5 Reasons Why You May Need An Accountant For Your Small Business

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The following is a guest post about the benefits of having an accountant for you small business…

When small business owners hire an accounting professional it is more common to hear them complain about it being an expense or a necessary evil, but this needn’t be the case. By asking the right questions, and taking advantage of you accountants knowledge, you could actually make your business more profitable.

5 Benefits of Having An Accountant For Your Small Business

Debt Management Advice

Accountants are financial experts, so if you feel your business needs help managing your debt then you can ask them for their advice; most professionals will be more than willing to help, or at least be able to refer you to someone who can. Your accountant can advise you of the best ways to move your debt around so as to pay minimal interest; they will also be able to recommend a sustainable debt repayment plan.

Remember it is in the best interests of your accountant to make your company as profitable as possible, which leads onto…

Accounting Software

By hiring an accountant, you don’t need to waste money on expensive accounting software. Many small businesses are duped by advertisers into buying software they really do not need.

Cheap software, or even a well-designed spread sheet, will be able to calculate accounts payable and receivable for a small company, anything more complicated can be done by your accountant.

Tax Advice

One of the major benefits of having an accountant is gaining access to their knowledge of the tax system. Ask your accountant about the best legal ways to pay no more tax than you have to.

Your accountant will also offer tax help when it comes to completing your returns (great for when you have a question about filing status or some other simple topic), or they can even provide professional tax preparation if you require.

Business Expenses

You can even ask them about business expenses you may be entitled to claim back. There are certain caveats surrounding business claims for things such as company car mileage, mobile phone use and internet use and your accountant will be able to work out what you are entitled to.

They may also let you know about less well known expenses you could qualify for such as claims on fixtures and fittings, utility bills, staff magazine subscriptions and so on.

Bookkeeping Advice

One of the biggest reasons for flawed small business accounting is mismanagement of records. Small business owners often end up paying more tax than they are due, because they give their accounting professional a poorly organised or incomplete set of records.

Ask your accountant about the best way to organize your records; they will be more than happy to oblige as it makes their job easier.

When looking for ways to save money, skimping on how you manage your finances is usually not a wise choice!

photo by jannoon028

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