Crown Financial Ministries New Zealand

The good and bad of oil prices

Peter Crawford — Wed, 08 Apr 2026 23:30:55 +0000

The good and bad of oil price rises

This article was first published in November 2022, reflecting the increase in petrol prices to $3.08 per litre in July 2022. It has been updated with the latest vehicle data from the 2023 Census.

Oil prices have significantly increased recently due to the Israeli and United States of America attack on Iran. The subsequent impact on oil prices, mostly due to the closure of the Strait of Hormuz, has been impacting household budgets and pushing the rate of inflation higher. However, is an increase in the price of oil always a bad thing?

Prices rises are “good” when they accurately reflect need and scarcity. Prices rises are “bad” when they do not represent realities of the world in which we live. That occurs when artificial constraints are put on supply or competition among suppliers is limited. That might occur if oil suppliers agree on a minimum price or to limit production.

However, if there are genuine limits to oil production, along with increases in global consumption, then it is good for prices to rise.

Short-term price increases are useful for helping us think about our current use of oil on a daily basis. New Zealand has a very high rate of car ownership and a high share of journeys to work and education are made by car.

Census 2023 transport to work data, excluding people who work from home, shows:

85% of people drove to work or were passengers in a car, truck or van,

7% walked or cycled, and

6% used public transport.

The percentage of people driving to work or travelling as a passenger in a private or work car increased from 83% in 2018 to 85% in 2025. In 2023 60% of children under 15 years were driven to school in a private car or work vehicle.

Technology change has supported an increase in the number of people able to work from home. In 2013 9% of people indicated they worked from home, but by 2023 the share had doubled to 18%.

A trend towards higher car use is shown in Census data, which shows an increase in the percentage of households owning four or more vehicles. The percentage of households with four or more cars increased from 5% of total households in 2013 to 8% in 2023. The number of households with no vehicles decreased from 8% in 2013 to 6% in 2023.

Rapid increases in the price of fuel can be a good catalyst for encouraging households to try alternatives for travel that are good for our wallet and often for our health.

My observation from running finance courses over the past 25 years is that few households understand what their car is really costing them. Access to loans has become much easier for people with mortgages, but it appears few people are told what the cost will be for taking out a top-up loan for a car purchase.

Estimates I have prepared for the cost of owning a car show the annual fixed cost of owning a car is usually higher than the variable costs of running a car.

Fixed costs are those expenses that do not change or change little regardless of how many kilometres you drive in a year.

Fixed costs include vehicle insurance, Warrant of Fitness, vehicle licensing, vehicle depreciation and interest. These last two items account for the largest share of fixed car ownership costs.

Vehicle depreciation is an estimate for how much the value of your car declines each year. The average car in New Zealand lives 21 years and is then scrapped. The annual loss in value is very high for new cars, but low for old cars.

There is an interest cost regardless of whether you borrow to buy a car or you pay with cash. The cost is much higher if you borrow to buy a car. If you have to take money out of a saving account to buy a car, the annual cost is the interest you would have earnt on those savings if you left the money in the bank and didn’t spend it on buying a new car.

Variable costs include fuel, tyres and vehicle maintenance and servicing

It’s difficult to produce a simple estimate for the annual cost of car ownership. It is influenced by how old the car is, how large it is, how far you drive it in one year and how you paid for it. Maintenance costs are usually higher for older cars.

Broad car cost estimates I produced for Horizons Regional Council for second-hand cars suggest an annual cost of $6,700 for a 10-year-old petrol car. The annual cost will be less if it’s a small car or older than 10 years. Ownership costs are likely to be higher for electric cars because the purchase price is usually higher than for petrol cars, but the variable costs are likely to be lower.

The estimates for petrol cars suggested a fixed cost of $3,400 a year and a variable cost of $3,300. The variable cost estimate was prepared before the recent rise in petrol prices, so the variable cost will be higher while petrol prices are high.

Options for reducing your car use or the number of cars you own include:

greater use of working from home, walking, cycling, car-pooling or public transport,
on the few occasions that an additional car would be useful, consider using a taxi, hiring a car, or borrowing a car from a friend or family.

More articles to inspire you:

Should I buy an electric car?

Materialism: what it is and how to escape it

Is it wise to top up the mortgage on your home?

How to live a fulfilled life

Choosing a Joyful Christmas

Peter Crawford — Thu, 20 Nov 2025 03:29:22 +0000

CS Lewis observed years ago that Christmas had become a commercial enterprise, but you can choose to ignore materialism and joyfully celebrate the birth of our Savior.

Do you join in what CS Lewis called the “merry-making and hospitality” of Christmas or in what he described as the “annual symptom of that lunatic condition…in which everyone lives by persuading everyone else to buy things”? (C S Lewis, What Christmas means to me, God in the dock—Essays on Theology and Ethics)

Focusing on the love of God with gift giving centered around loving others, you can prevent stress and debt. Simply plan ahead, save ahead, and budget ahead.

Make your list and check it twice to prevent distractions and loss of time.

Accurately budget what you can spend. Then, use cash, a debit card or pay all items you put on your credit card at your first billing.

Research shows people spend over 20% less using cash or a debit card.

Or don’t spend any money. Here are some gift ideas that you can make for very little expense:

Plant bulbs in pots,

Cook treats to give away,

Craft a handmade card,

Chop and deliver firewood,

Pass down family heirlooms.

Make your own gift cards for house cleaning, outside jobs in the garden or around the house, meals, babysitting, chauffeuring kids or teaching skills like knitting, sewing, cooking, gardening, woodworking, photography, driving, or car maintenance.

Experiences – rather than things – often give greater satisfaction. So, cook together, go to

Don’t forget to budget for holiday meals and involve your guests by inviting them to bring a dish.

A little planning and creativity can make this holiday one you will long remember!

In this the love of God was made manifest among us, that God sent his only Son into the world, so that we might live through him. (1 John 4:9)

Learning from failure

Peter Crawford — Thu, 04 Sep 2025 04:19:09 +0000

Have you ever failed? I mean, really failed?

You know, that sickening feeling when you realize you’ve missed the mark, made a huge mistake, or gone just a little too far? No wonder it’s one of our greatest fears.

I’ve certainly failed. My biggest financial failure was becoming successful in the eyes of the world and a failure as a steward of what God had given me. I got so distracted by my own goals and achievements that I sought after the wrong things. I accumulated worldly wealth instead of true Kingdom riches.

But God isn’t unaware of our mistakes. In fact, 2 Corinthians 12 tells us that in our weaknesses and mess-ups, He’s made even greater. So don’t give up.

Repentance is part of learning from your mistakes.

Come humbly before God to confess your failures and surrender your future. He’s slow to anger and abounding in love. God can always redeem your mistakes for His purpose.

If you have this attitude, you may be able to avoid messing up in the first place! Psalm 37 tells us, “Commit everything you do to the LORD. Trust him, and he will help you.”

If you’re making short- or long-term goals, pray about them and commit them to the Lord. Proverbs says, “In their hearts humans plan their course, but the LORD establishes their steps.”

No matter what your failure is, it’s never so bad that God can’t redeem it.

Ask Him to reveal what He wants you to achieve. Abide in Him and He will give you the desires of your heart.

Crown’s online MoneyLife Personal Finance Study is a 10-part course with accompanying videos to guide you through God’s teaching on money

Other courses we have available include:

Debt Free Living online course

Money Dates online course

Do Well 10 Week Small Group Biblical Financial Study (New Zealand edition)

Chuck Bentley, CEO, Crown Financial Ministries International

Maintaining your savings accounts

Peter Crawford — Tue, 19 Aug 2025 03:57:57 +0000

Maintaining your savings accounts

Looking ahead to the future is an important, especially when it comes to your finances. The best way to prepare for the future and give yourself financial margin is to establish healthy savings accounts.

That helps ensure you have cash to cover expenses, stay out of debt, reach your goals, and live without stress. Saving doesn’t come naturally to everyone, but that doesn’t mean you can’t do it.

Take a look at your finances

Sit down and take some time to uncover what your exact financial situation is. Look at your monthly income and spending and what margin you need to stay within to cover your primary spending. You can then allocate an amount each month to put into your savings. Cut out the unnecessary things that are preventing you from saving. You need to form a lifestyle that equips you with more ways to save.

It is important to make a distinction between money that you want to save for short-term needs and money that you want to invest for the longer-term. Your short-term savings should be accessible at any time in case of an emergency.

Make a plan

The saying “he who fails to plan is planning to fail” rings true for your finances! Make short- and long-term savings goals and come up with a plan (starting with a budget) on how you’re going to reach them.

Distinguish between emergency savings and big purchase savings. Maintain at least $1,000 in an emergency fund at all times as you work your way up to saving 9-12 months’ of living expenses. If you want to buy a car, go on holiday, or pay for major dental work for one of your children, save for those specific goals. Assign a dollar amount and a time frame to your goal and get to work!

Expect the unexpected

While becoming future-oriented is very important when saving, our plans rarely go exactly how we imagined. Proverbs 16:9 tells us that, The heart of man plans his way, but the Lord establishes his steps. Whether it’s God’s plan or the broken hot water cylinder that surprises us, be ready to be flexible. If things do not go exactly how you had imagined when it comes to your finances (or any other aspect of your life), just remember that His divine plan is a part of your journey.

Create savings goals

Having goals for your savings can help you to be more intentional with your money and help you to see a present purpose in it rather than only seeing its future potential.

How to get started

It is important to save $1,000 and to keep that money on hand in an Emergency Savings Account. This is an account that you do not spend unless absolutely necessary. Once this is achieved, try to keep saving until you have 3 to 6 months of your living expenses in this account. The Money Map can help walk you through each of these savings goals, as well as other financial goals.

Working on your savings account now will bring you closer to your financial goals and reduces financial stress in the future. Take a hold of your savings and maintain a consistent plan that works for you. Though it might seem difficult at first, taking this initiative will help you navigate through your finances and better equip you for whatever the future may hold.

Looking after your savings accounts

These are some ideas people use for maintaining their savings accounts:

Many people find it easier to set up automatic payments to transfer money from their spending account as soon as their pay comes in. That removes the temptation to spend it.
Some people choose to have a savings account in another bank. If they have to go to the bank to withdraw money it makes it harder to withdraw funds when they are tempted to spend it. Some choose to have no card or online banking access to their savings account.
If you have unexpected money come in, or your spending is below what you budgeted, transfer some of your surplus into your savings accounts.
Some people use the annual donations tax credit as a tool for saving. It is easy to estimate how big your refund will be each year.

A point to remember

Saving some of your money doesn’t mean you don’t get to spend it. If you manage your savings well you will avoid short-term debt for unexpected expenses. Over the longer-term you will have more money to spend on the things that are important to you, or you can be more generous to others. If you don’t have savings, you will struggle to avoid going into debt when unexpected bills occur. In addition to the financial benefits of savings, life is also less stressful when the unexpected happens and you have savings that you can draw on.

Setting up an emergency savings account

Peter Crawford — Sat, 26 Jul 2025 05:40:55 +0000

An emergency savings account is a primary element of a financial plan. Having money set aside and always available for the unexpected expenses eliminates a lot of financial stress and the need to rely on credit cards or other forms of short-term debt.

How Much Do You Need?

An emergency savings account is a source of money to draw on during unexpected circumstances. It is basically an insurance fund for sudden setbacks. This might include a job loss, having to stop work due to major health issues, major car or home repairs, a natural disaster, an unforeseen tax bill, a death in the family, or emergency travel expenses.

The alternative of income replacement insurance is expensive, and you are not always guaranteed a payout. If you don’t make any claims on your insurance, you don’t receive any money back, but if you consistently save for emergencies, you will eventually have more than you need and be earning money on your savings.

Most experts recommend saving three to six months of your current living expenses, but these are some scenarios where you might want to save more:

Those with children who are still dependent on you.
If you have a mortgage.
If layoffs are common in your industry
If you are retired and don’t have other sources of income.
If you are self-employed or your income is unstable.
Single parents without a second source of income.

If you spend less than you earn, have no dependents, and no debt you can keep fewer months of living expenses in emergency savings.

A portion of the emergency savings should be easily accessible, in accounts that won’t be penalized for withdrawals.

You need to be able to cover rent or mortgage, utilities, insurance (car, home, life), routine maintenance (car and home), groceries, child-care, and other debt payments. Find the total monthly cost of these items and multiply that by three to calculate a three-month saving goal; multiply by six to determine what is needed to cover six months. This total is for basic survival—discretionary items are not included (the things that are nice, but you can survive without them). This is money needed to survive if the unexpected hits.

How to Start

Open an account that you absolutely will not touch unless a true emergency arises. Aim to save $1,000 as quickly as possible. Set up automatic payments so you will not spend the money. Deposit gifts, pay raises, bonuses, or tax refunds when possible. Go through your bank and credit card statements to see where you can cut expenses and divert that money toward an emergency savings account until you establish a three-to-six-month cushion. When you need to withdraw money, aim to replenish it.

Lessons from Ants

Go to the ant, O sluggard; consider her ways, and be wise. Without having any chief, officer, or ruler, she prepares her bread in summer and gathers her food in harvest. Proverbs 6:6–8

Not only are ants extremely busy creatures, but they are also known for their ability to store food that is ultimately shared with others in their colony. Most of us have seen an ant carrying off a large breadcrumb under the picnic table. They are not feasting on the bread; they are harvesting it for use in the future. This is the wisdom that God wants us to learn from.

What about debt repayment?

If you have debt, repaying that debt as fast as you can is a priority. You will be in a much stronger financial position once you are debt free. Make a commitment to take on no new debt.

If you don’t have much room in your spending plan for savings, saving $5 or $10 a week is still a good starting point for your emergency savings account.

Set a goal; then challenge yourself with spending fasts, like a no-eating-out month, a no-entertainment-expense month, etc. Find friends to do this with you; some competition may help you build your savings account faster!

How many savings accounts do you need?

Once you hit your goal for your emergency savings account, consider opening another bank account for future needs. This might include replacing a vehicle, necessary maintenance on your home, investing in more insulation for your home, installing solar panels, buying a home, holidays, and more.

Summary

At least three savings accounts plus your KiwiSaver are useful:

Short-term expenses that don’t occur every month. That includes annual holidays, dentist and vehicle servicing
Long-term savings for buying a house, home improvements, car replacement and major holidays
Emergency savings for unexpected events

The article next month addresses how to maintain these savings accounts.

Why having an emergency savings account is essential

Peter Crawford — Tue, 17 Jun 2025 03:31:00 +0000

Introduction

The focus of the Retirement Commission’s Sorted Money Month in August 2025 is on the importance of having emergency savings. This article is the first in a series of three articles on emergency savings. The topic we are covering are:

Why having an emergency savings account is essential,
How to set up an emergency savings account and how much is enough, and
How to maintain your emergency savings account.

Why is this such an important topic to consider?

You do need an emergency savings account. It is a primary element of a basic financial plan. Having money set aside and always available for the unexpected expenses that will surely come eliminates a lot of stress. It also eliminates the need to rely on credit cards, a bank overdraft or after-pay type loans.

If you don’t have an emergency savings account there will be times when unexpected bills come that you don’t have the money to pay. While most businesses offer after-pay solutions, they always come with a cost. There’s usually set-up costs and interest to pay. That makes it harder to put money away for the next unexpected bill.

Banks do allow you to go into overdraft. That means that if you get to the supermarket checkout and there isn’t sufficient money in your account, the bank will still allow your payment to go through. Budget coaches advise that once people go into overdraft on their account, many people struggle to get their bank account back into a positive balance.

If you don’t have any savings and your mechanic doesn’t allow you to set up a payment plan, it may mean your car is off the road until the bill is paid.

What is the emergency savings account for?

An emergency savings account is a source of money to draw on during unexpected circumstances. It is basically an insurance fund for sudden setbacks: a redundancy, the loss of income, car bills, dental bill or prescription glasses, home repairs, a natural disaster, an unforeseen tax bill, a death in the family, or emergency travel expenses.

Giving gifts, holidays, or predictable expenses are not emergencies so you shouldn’t use your emergency savings account for these purchases. A spending plan (budget) is helpful for planning for these regular large expenses, like your rates bill, large electricity bills in winter or your annual holiday.

It’s important to remember that saving is about delaying your spending, rather than not spending at all. If we have savings when we make a purchase or need to pay a bill, we will have the money to pay for it without going into debt.

An important economic principle to remember is that people who save have more money to spend on what they want than people who don’t save. That’s because saving accounts pay you interest as your money accumulates.

Remember, all debt has a cost. It’s not just the fees you pay to set up the loan and the interest you pay. It’s also the loss of freedom you experience. In the Bible, the writer of the book of Proverbs advises: Just as the rich rule the poor, so the borrower is servant to the lender. Proverbs 22:7. If you get behind on paying for items you have bought on credit, you risk having them repossessed and still having debt to pay.

Debt calculators are a great tool for working out what your debt is costing you. In the same way, savings calculators show you how quickly your savings account will grow as the interest the bank pays you gradually increases. Sorted.org.nz and Crown Financial Ministries both have a range of online calculators and tools you can use. They also have online tools for setting up a spending plan.

Other articles and courses that are useful are:

Debt Free Living online course

Do Well 10 Week Small Group Biblical Financial Study

Budgeting on a fluctuating income

Five mistakes couples make with money

Helping your children into home ownership

Peter Crawford — Sun, 23 Mar 2025 21:12:25 +0000

It is sometime suggested that home ownership is now only a dream for many people, but Census data shows the rate of home ownership has been increasing since the 2018 Census. In 2023 66 percent of households owned their own home (including those held in a family trust), while 34 percent of households did not own their home. That compares with 64.5 percent of households owning their own home and 35.5 percent of households that did not own their home in 2018.

Over the past 40 years house prices have increased faster than the rate of increase in incomes, but lower mortgage interest rates have helped more people to enter the housing market. Debt-to-income ratios introduced by the Reserve Bank in late 2024 are expected to limit future house price growth.

The introduction of Kiwisaver in 2007 has helped households save enough money to make a reasonable deposit on home and is an important contributor to the increase occurring in home ownership rates among young people.

Government measures to support home ownership are:

1. First Home Loan for buyers with a low deposit. Most home loan lenders require a minimum 20% deposit. With a First Home Loan, you only need a 5% deposit. Kāinga Ora underwrite the loan, this means that bank or lender can accept a 5% deposit when they usually would not be able to. The loans are available to people under a specified income level.

2. Kāinga Whenua Loan for Māori to buy or build on Māori land. The Kāinga Whenua Loan is an opportunity for Māori to build, purchase or relocate a house on Māori land that has shared ownership. The loans are also available for Māori collectives, including land trusts.

3. Tenant home ownership grant for Kāinga Ora tenants. If you’re currently a Kāinga Ora tenant, you may be eligible for a grant to go towards buying the home you’re living in. The tenant home ownership grant is a gift of 10% of the purchase price of selected Kāinga Ora houses up to a maximum of $20,000. Houses in some areas are not available for tenant home ownership.

4. Access to Kiwisaver for people who have previously owned a house. If you have previously owned a house but no longer own a house it may be possible to access your Kiwisaver account. This applies to people who didn’t use Kiwisaver to purchase their previous house. There are other conditions as well.

5. Some low-income households are also able to use the Accommodation Supplement to assist with mortgage payments. You don’t need to be receiving a benefit from the government to apply for the Accommodation Supplement.

It is hard to find any accurate statistics on the degree to which parents are helping their children into home ownership.

The main options for helping children into home ownership are:

1 - Making a Financial Gift

This is a worthwhile option, even if the children have been able to save the 20 percent deposit required.

A few years ago I did the sums for a couple who were buying their first home using a Crown mortgage calculator. We assumed the couple continued with the same weekly payments on their mortgage after receiving a gift to reduce the balance on their mortgage. A $10,000 gift saved the couple $40,000 in interest over the 30-year term of the loan, shortening the time to pay it off. Small gifts to help them top up payments on the mortgage will also have long-term benefits if you don’t have a big amount to gift. Some people are concerned that the amount they can gift is limited but the key limit applies during the period before you need to access residential care for yourself or your spouse. It is best to complete your major gifting well before then.

2 - Interest Free Loan

This will have the biggest financial impact if it is used to help them pay off their loan faster. It is important to have a loan document, even for a loan to your children, and to seek legal advice.

3 - Offset Mortgage

This has a similar benefit to an interest free loan but offers much greater flexibility. As parents, you keep full control over your money.

BNZ and Kiwibank New Zealand offer offset mortgages which allow parents to use their own savings to offset the interest on their children’s mortgages.

There are some benefits over the interest free loan option:

- The money you make available to be linked to the offset loan remains in your control and you can use it at any time. That means it is possible to link your savings and the money in your day-to-day spending account to be offset against the mortgage. It would not be practical to commit the same level of support through an interest free loan
- The offset mortgage option has no establishment cost for you, while a large interest free loan is best provided through a secured mortgage, which involves legal fees. Moving your savings to the same bank as your child is easy.
- Your child is not in debt to you. Being in debt to someone else does influence the relationship between the lender and borrower. With the offset mortgage, the bank sets the repayment terms and monitors that payments are being made, so you don’t need to worry about that.

Any savings accounts linked to an offset mortgage do not receive any interest payments. Banks currently charge a higher interest rate for offset mortgages. That means the weekly payments are higher than for a low interest fixed-term mortgage. However, if the interest on the mortgage is being offset, this speeds up the repayment of the mortgage, since more principal is paid off each week.

So how does the offset mortgage work? If your child has taken out a mortgage for $250,000 and you have a combined amount of $200,000 in your day-to-day spending and savings accounts, the bank charges interest on only $50,000. The following example is based on a 25-year mortgage for $250,000, which has an interest rate of 5.8%.

In the first week of the mortgage, the offset means $223.08 less is paid in interest and $223.08 more principal is paid off compared with the normal principal repayments.

Most parents will not have that much in savings, but even a much smaller amount can make a big difference on how long it takes to pay the mortgage off. If you have only a small amount that you can offset, most of the mortgage can be put into a lower interest fixed-term mortgage and a smaller balance kept on the offset loan.

An offset mortgage also allows your child to have money in a savings account for large one-off expenses, but the balance in their spending and savings accounts is also offset against the mortgage.

Other articles which might be helpful are:

Financially helping your adult children

Advice for life-long singles

Should we borrow for our daughter’s wedding?

How does God’s financial advice compare with the worlds?

Materialism: What It Is & How to Escape It

Peter Crawford — Tue, 25 Feb 2025 01:12:32 +0000

Materialism: What It Is & How to Escape It

One of the greatest threats to our walk with God is the trap of materialism. We have to work at not being lured away from Him when we spend our money to meet our own desires. Why? Because affluence tends to blind us to the needs of others.

At first glance, the scriptural warnings about riches and their dangers might suggest that we should avoid all luxuries. But that’s simply not true. God does not prohibit us from enjoying the benefits of this world; after all, they are His.

Instead, we are supposed to avoid entangling ourselves. If we do get entangled in our desires, we are no longer able to fulfil our primary purpose – to glorify God. The affluence of life in New Zealand is a mixed blessing. On the one hand, our prosperity has made life much easier and has freed a great deal of money to spread God’s Word. On the other hand, earning and then spending our wealth requires a great deal of our time and attention.

God warned the Israelites that they would be tempted to forget Him when they experience financial prosperity:

“When you have eaten and are satisfied, praise the Lord your God for the good land he has given you. Be careful that you do not forget the Lord your God, failing to observe his commands, his laws and his decrees that I am giving you this day.

You may say to yourself, “My power and the strength of my hands have produced this wealth for me.” But remember the Lord your God, for it is he who gives you the ability to produce wealth, and so confirms his covenant, which he swore to your ancestors, as it is today.” (Deuteronomy 8:10-11, 17-18)

Avoiding Materialism

The good news is, there is a proven methodology to combat the grip of materialism – regular, generous, sacrificial giving.

Giving our way of acknowledging that God is the owner and provider of all we have. We recognise that we are stewards of all that God has given us. Giving is described in the Bible as a practice that will bring overwhelming blessings to our lives.

Jesus said, “It’s more blessed to give than to receive.” (Acts 20:35)

He also said, “Give, and it will be given to you. A good measure, pressed down, shaken together and running over, will be poured into your lap. For with the measure you use, it will be measured to you.” (Luke 6:38)

Giving propels us into a freedom found in exercising faith, believing God will use our gifts and supply our need. Being generous is about more than just giving away money.

That means your time, your skills and talents, your listening ear, encouragement for others, and your money are all powerful tools that God is eager for you to give generously to others. Generosity furthers the Kingdom.

When we begin to think like managers instead of owners, we enjoy and are grateful for all God provides. We recognize that we are blessed to be a blessing. So, with pure motives, we steward as God directs.

Budget to Give

So how do we develop the habit of giving? If you desire to give, then you need to budget for it and be disciplined. Pray like the Psalmist, “Incline my heart to your testimonies, and not to selfish gain!” (Psalm 119:36)

If you’re married, pray together, and, with united hearts, give as God convicts you – starting with your home church. It’s an opportunity for you to trust Him more than ever while keeping your lives free from the love of money.

You may also have other ministries that you would like to support. Consider giving first to the Lord before paying other bills. Commit to giving a percentage of your income to church, and do it consistently. It is great to be able to tithe but if you can’t start at 10%, start at 2% or 5% and work your way up.

The Apostle Paul wrote that, “Each one must give as he has decided in his heart, not reluctantly or under compulsion, for God loves a cheerful giver. And God is able to make all grace abound to you, so that having all sufficiency in all things at all times, you may abound in every good work.” (2 Corinthians 9:7-8)

Developing the habit of generous giving will mean you’ll have to make sacrifices in other areas of your budget. This will be a step of faith for you, but it will be one the Lord will honour. Remember where you’re storing up treasures. The things of this world will fade away, die, and decay, but the things of God’s Kingdom will never end.

If you want to learn more about having a Kingdom mindset and aligning your finances with Scripture, look at the financial study options we offer. These include printed course workbooks and online courses.

These include:

Do Well Biblical Financial Study

Serving One Master

Money Life Online

Money Dates Online

Merging Christmas traditions

Peter Crawford — Fri, 15 Nov 2024 03:52:31 +0000

What Christmas traditions do you hold dear? Maybe you always give a certain gift, bake a special dessert, or buy a specific kind of tree. For many of us, these rituals are what make the Christmas season special, and it’s hard to feel festive without them.

But for many of us, merging Christmas traditions can be a challenge when we get married. Now your real Christmas tree, white lights, and “Happy Birthday, Jesus” cake are being threatened by an artificial tree, covered in coloured lights, and Christmas cookies. Merging traditions requires patience and love!

If you and your spouse are trying to sort through this December dilemma, let me encourage you to make your own traditions. Instead of disagreeing over whether or not the light up reindeer gets to live in the front yard, find something that’s new for you both to adopt (a light up nativity scene, perhaps?).

To create your own traditions, take the best of what you both grew up with. Filter them through the lens of truth, and adopt those that glorify the gift of Jesus.

In all the planning, honour your spouse above yourself and seek harmony. Here are 3 attitudes to adopt:

Don’t be easily offended!

We all love our traditions, but don’t be offended if yours doesn’t make the cut. Jesus was still born as Saviour of the world whether or not you open a gift or two the night of Christmas Eve.

Be willing to cooperate out of love.

We get to celebrate Christmas because of Christ’s love for us. Put this gift into practice by loving your spouse.

Keep things simple.

The fewer items or traditions, the more money you’ll save! Don’t try to be extravagant or excessive.

Keep things simple. Don’t break the bank in an effort to celebrate Christmas. Overspending will just create stress – and it’s contrary to what Christ desires in stewards. So, find ways to build traditions. Here’s a few examples:

Pick a day to decorate and begin advent readings.
Light advent candles.
Play and sing carols.
Read or listen to Christmas books and stories.
Drive around and look at Christmas lights.
Attend community concerts.
Set up your own nativity scene.
Put a Happy Birthday Jesus banner in your front window
Bake cut-out cookies and a Happy Birthday Jesus cake.

This holiday season, start a new tradition of generosity and faithfulness in your family. In a world that says “I need it all,” help your loved ones to say “God owns it all.”

Now is a good time to think about what Christmas gifts are necessary for friends and family and how much to spend on each person. Are there better ways of showing how much we care for them?

May you have a great time celebrating Christmas with friends and family.

Other articles which may be helpful are:

Christmas – Celebrate Jesus

Five mistakes couples make with money

New Year resolutions

Is it wise to top up the mortgage on your home?

Peter Crawford — Thu, 19 Sep 2024 02:51:08 +0000

Many people take out top up mortgage loans on their home. Common reasons are to pay for house renovations, repairs and maintenance, installing insulation and solar panels, buying a car or paying off credit card debt.

Understanding top up mortgages

If you paid $400,000 for your home ten years ago and borrowed $320,000, your equity when you purchased the home was the $80,000 deposit you paid. If your home has now risen to $800,000 in value and you have paid $120,000 off your mortgage, your equity in your home is now $600,000. Most lenders will allow you to borrow against your equity, taking into account what you still owe on your mortgage and how much income you earn.

Your increase in equity in your home makes it easy to get another loan. However, the increase in equity is often used for unwise purchases, like a car, a holiday, renovations that don’t add value to your home, or paying off a credit card but not addressing your credit card spending. It is easy money, but the amount of extra interest you pay is significant.

What is a top up loan?

It is secured against the equity in your home.
It is an additional loan to your primary mortgage, which means additional loan payments to meet each week.

Wise stewardship for renovations

Many people think that when they do significant renovations to their home, its value will increase in recognition of the money they have spent on it. However, extensive kitchen and bathrooms will probably add little value to your home. That’s because the work done is mostly catching up on deferred maintenance. The same principle applies to replacing your roof or other significant repairs needed.

If you are planning to do work on your home:

First, determine if you can afford this project and how quickly it needs to be done. A key financial principle is that the renovation will cost you less if you have saved up the money before you start the renovation.
Establish a budget for what the total renovation will cost. Estimate your debt payments divided by your monthly income to determine how much you can afford. Otherwise, abandon the idea of using any type of top up loan, and wait until you have saved enough to pay cash or can manage with a smaller loan.
If your roof is leaking, check the cost of making short-term repairs to give you more time to save up more for the full cost of replacing the roof.

Investments that may add value to your home include:

Installing or adding additional insulation
Installing double glazing
Installing solar panels and potentially a battery
Adding new rooms

You need to think about these investments from a cost-benefit basis. That means calculating what the project will cost and how much your home will increase in value. Insulation and solar panels will reduce your energy cost but is the benefit higher than the cost? Borrowing money to pay for these investments adds to the total cost, so may reduce the financial benefits. Even if you have cash to make these investments, there is still a cost to you. That’s because when you use your savings, you are reducing the amount of interest you would earn if you didn’t invest in the home improvement.

Suggested steps for major renovations

Get a valuation done and an estimate for how much the renovations will add to the value of your home.
Calculate the equity you have in your home.
Get a solid estimate of renovation costs.
Review your budget to confirm what you can afford to pay.

Consider the following:

Can you realistically manage both payments—not just today but in years to come?
Have you thought through the “what-ifs” that might impact your income
Do you have a solid emergency fund?
Do you have the ability to pay off the loan faster to reduce the amount of interest you pay?
Try out the calculators on the Crown and Sorted websites to see how much a top up loan will cost you.

Consider the times, pray, and seek wise counsel. If you’re married, make sure you are united in the decision. Ask God for wisdom; He gives it generously without reproach.

“A house is built by wisdom and becomes strong through good sense.
Through knowledge its rooms are filled with all sorts precious and riches and valuables.” Proverbs 24:3–4 (NLT)