How to Ruin Your Retirement Plans

A Retirement Guide for Millennials

It’s crazy to start thinking about retirement in your twenties and thirties, isn’t it? Actually, it’s crazy not to start thinking and planning for retirement then! Yes, the world will be very different in thirty or forty years. Forget the world; American society will be very different in twenty, much less thirty or forty, years. What this country, or even the world, will look like in the near future is something I will leave to sociologists and science fiction writers. But we still have to try to plan. The best we can do is move ahead and plan for the most likely futures and hope and pray that our choices are wise. The one thing I do know is that if you fail to plan, you have planned to fail.

So, let’s assume you plan for one of the reasonably imaginable futures ahead. There may not be paper money but there will still be some means of financial exchange. There may not be a workplace as we see it today but there will be some means of doing something called work in exchange for financial compensation. God made people to work and the competitive, accomplishment-driven nature of most people will result in efforts to make the world God has given us a better place to live, no matter how different that world looks than ours today.

How do you plan for an uncertain future? You plan for the uncertain by avoiding the known and obvious mistakes. Unfortunately, many people have a poor track record of avoiding obvious problems; just put up a wet paint sign and watch how many people touch the painted area to see if it is still wet. Some people, myself included, look at a warning almost as a challenge – a bit like, “I dare you!” Well, here are some warnings, historical mistakes people have made or seen over the years. Please do not take these as a dare to try each one or any of them.

Mistake #1 – Give only to yourself and neglect God

I start with the most obvious as well as the mistake that is most common – thinking “God can wait.” Truthfully, He can. But, it isn’t wise to leave God out of your present day or out of your retirement plans. As for the present day, remember that He is named “I AM.” Exodus 3:14. Wherever and whenever you are, He is. He has made it clear that He is not to be ignored. Haggai 1:2-6. As for the future, He wants to be in your plans. Luke 12:13-21. Don’t give just to yourself by hoarding your savings; make sure you both save and give to God.

Giving to God is a part of worship – it is worship! He is worthy. I Chronicles 16:25 and Psalm 96:4. You give to honor God and that is worship.

God is not “served by human hands, as if he needed anything. Rather, he himself gives everyone life and breath and everything else.” Acts 17:25. However, He is pleased when we exhibit His spirit of generosity. Additionally, in the Old Testament, sacrifices to the Lord were a form of worship and they were designated as “gifts”. Numbers 18:11. If you want a New Testament reference, see Matthew 2:11 where the wise men from the east worshiped Jesus in the form of “gifts”. The money given to Paul by the church in Philippi was seen by God as “a fragrant offering, an acceptable sacrifice, pleasing to God”. Philippians 4:18. That is worship.

I challenge you – try to be as generous with God as He has been with you. No. Make it a bit easier; try for a tenth of His generosity.

Mistake #2 – Don’t factor inflation into your plans

If you are spending a dollar on something today, know your spending almost inevitably will go up over time. One thing you don’t see in a short life is the enormous impact of inflation over time. When I was 16, I remember when a gallon of gas was 25 cents. My first car cost less than $2,000. In 1968, a Big Mac cost 49 cents. Our first apartment we rented while in college was only $250 a month. On the other hand, the minimum wage was only $1.60 per hour. We have watched prices (and income) soar. It is hard to plan for that, but it is essential. Inflation is real and you can be financially harmed by it if you ignore the fact that it is going to happen. See Inflation and Your Retirement.

To make matters more difficult, it is hard to know what you are planning for. Many retirement professionals will recommend you plan for 60 or 70% of your normal living expenses during your work life. But that is likely low, because although some expenses may decrease, others will increase. Medical costs are increasing far faster than the rate of inflation, and even retirement leisure, travel, eating out, and being active is far from cheap. If all you want out of retirement is to sit and watch TV and eat pizza, retirement will not cost a lot. But having only TV and pizza is not much of a life.

If you want to retire with the buying power of, for example, $75,000 today, inflation requires that you plan not for that but for more than that, a lot more. Assuming 3% inflation for 30 years, you will need a bit more than twice as much, or $152,442.34. Check it yourself on the US Inflation Calculator. That means you need to save more. See Save More – 10% Isn’t Enough.

Just as you are aging, so are your home, car, appliances, and everything else you own. Don’t forget long term care, assisted living, and higher medical expenses, all of which are highly likely as you age. You need a qualified financial adviser to you help you make this financial journey. 

Mistake #3 – Take no chances

Being a conservative investor has its advantages, but being too conservative is a poor investment plan for a young adult with 30 to 40 work years ahead. Remember inflation? The same compound effect of inflation that works against you can work in your favor if you invest your savings and beat inflation. See Inflation and Your Retirement. But you can’t beat inflation with a money market account, CDs or bank deposits. Over the long term, the market is the best opportunity you have to beat inflation and get ahead. 

Consider a target date fund. A target date fund (“TDF”), also referred to by some as age-based or lifecycle funds, is a collective investment scheme intended to provide a simple investment solution to aiming at retirement in the future. A TDF uses a portfolio with an asset allocation mix that gradually becomes more conservative as your target date of retirement grows closer. Pick the date you hope you are going to retire. If you start early enough, the fund will be more aggressive while you are many years away from the target date and automatically shift to more conservative investments as you near the target year.

Mistake #4 – Spend and enjoy all you can today

Life is short; eat dessert first! Carpe diem! Live for today! Those are enthusiastic words filled with enthusiasm for life. Robert Frost’s poem Carpe Diem included a figure referred to by the name of “Age” who encouraged children to:

“Be happy, happy, happy
And seize the day of pleasure.”

And remember, Jesus said,

Matthew 6:31-34
31  So do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’
32  For the pagans run after all these things, and your heavenly Father knows that you need them.
33  But seek first his kingdom and his righteousness, and all these things will be given to you as well.
34  Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own.

But note that Jesus said, “do not worry,” not “do not plan or give any thought at all” to tomorrow. Ignoring the future can have an enormously high cost. The train of time and age is coming down the track. It is wise to look ahead and see it coming. You can’t avoid aging, but you can make aging better or worse. Instead, enjoy life today, but do it in moderation and grow towards a full life and a great retirement.

Mistake #5 – My kids are my life

One of the tragic mistakes that I believe history will say about the Boomers, the post WW II generation, is that the Boomers not only wanted a better life for their children, but some gave it to them – too easily. We and Generation X created the entitlement generation, also known as the trophy kids, the Millennials; they all get a trophy and there are no losers. That might make for a fun childhood, but it isn’t at all what real life is like.

Everyone should want what is best for his/her children but make them earn it. At the same time, do not give to them at the expense of your savings and future. There is a balance somewhere in-between heavy sacrifice and stinginess. Just as you don’t want your thirty-year old child living in your basement, you don’t want to have to live in theirs! Help with college but let them work and help themselves too. Yes, the wedding will be the best ever. But it can be the best without being the most expensive, and the honeymoon does not have to be an overseas trip. My wife and I did fine with 3 nights at Disney World.

Mistake #6 – Bigger, newer with more features is better

It’s a shame; my 9-year-old flat screen TV isn’t a smart TV. I think I need to get a new one because I need a smart TV. No, at most I WANT one because no one needs a 70-inch LED Smart 4k UHD TV that supports voice controls via Google Assistant or Amazon Alexa. Actually, I don’t even want one, in part, because I know that in a year it will be obsolete and passé. There will be some new feature(s) that will make me want to buy another new one. The same marketing urge is there for the newest phone. You know, it’s the one with the new features that will do things most people will never use and have more connectivity than they want.

There is a name for some of what marketing makes us do; it is called the Diderot effect. It is named after the French philosopher, Denis Diderot, who lived in poverty most of his life but made a series of what are now called reactive purchases when he received some money. He bought a new scarlet robe. Then he realized that he needed other new things to go with his new robe. The author says that you can see the Diderot effect, or reactive purchases, “in many other areas of life:

• You buy a new dress and now you have to get shoes and earrings to match.
• You buy a CrossFit membership and soon you’re paying for foam rollers, knee sleeves, wrist wraps, and paleo meal plans.
• You buy your kid an American Girl doll and find yourself purchasing more accessories than you ever knew existed for dolls.
• You buy a new couch and suddenly you’re questioning the layout of your entire living room. “Those old chairs? That coffee table? That slightly worn rug? They all gotta go.”

How true and how “modern America” that is. Much shopping can also be described as relational as well as reactive. Too much of shopping is done to fill emotional vacuums or in response to peer pressure. Recognize it for what it is and resist the urge to spend money, especially money you don’t have. If you don’t resist now, then in a year, it will start all over again. There is nothing new under the sun.

Ecclesiastes 1:9
9  What has been will be again,
what has been done will be done again;
there is nothing new under the sun.

Mistake #7 – That employer match isn’t that much

Many employers offer a 401(k) and quite a few offer a matching contribution by the employer to the employee’s account. That catch is that there is usually a “vesting” period, a period of time the employee must remain employed to keep the matching amount. It is a nice employee benefit that has a return benefit for the employer – employment longevity. That is a great deal for both. The employee who stays through the vesting period does not lose his or her own contributions. Later, they can remain in the 401(k) or be rolled over into an IRA if the employee decides to leave, dependent upon the terms of the company plan.

Not contributing to get the match is simply throwing money away. Employee Joe contributes 3% of a $50,000 ($1,500) salary to the company 401(k). The employer matches up to that same 3% so Joe has $3,000 in the 401(k) at the end of year one. But there is a 4-year vesting period so the extra $1,500 is only Joe’s if he stays 4 years. If Joe does stay 4 years, then the full $3,000 and any gains on it are his to keep. If there were average market gains of 6% during the 4 years, and more 6% contributions were made each year, Joe would have almost $9,000 that is his, including the 4-year-old match, with more to vest to him every year if he stays employed.

In other words, take the match.

But even more, max out your own contributions every year even without the match. Not contributing the maximum amount allowed by law for your income and age is also throwing money away. Money contributed early in life has a longer opportunity for growth. See Saving Mistake #2 above and the chart in 8 Financial Moves to Make in Your 20’s. If Joe contributed 6% and not 3%, the match remains on the 3%, then Joe’s balance at the end of 4 years grows to $15,800.

Now, continue that for 30 years and Joe’s retirement savings in his 401(k) will be substantial, well over $1,000,000. If Joe also saves some after-tax money in his emergency fund and in other after-tax investments, he may be well on the way to retiring before 65 or 66. How? Because Joe used the power of compounding his investment income.

Mistake #8 – Forget cash, use that card!

There is no doubt that it isn’t fun carrying around a wallet full of dollar bills. But what Millennials seem not to realize is that credit and debit cards come with a very high cost. Studies have consistently shown that people spend more – a lot more – when they don’t have the inconvenience of cash and use just a card. In 2008 the Journal of Experimental Psychology published a study “Monopoly Money: The Effect of Payment Coupling and Form on Spending Behavior.” That study is written in highly technical jargon but can be summed up easily. First, “people are willing to spend (or pay) more when they use a credit card than when using cash.” Second, “consumers tend to spend more when using a $50 gift certificate than when using $50 cash.” And third, “people were more likely to spend $1 which was in the form of a gift certificate than when it was in the form of cash.” Credit cards, debit cards, and gift certificates are not as “real” as cold, hard cash – and consequently people spend more.

Other studies support that result. Other studies show that shoppers paying with cards focus on the benefits of buying more that the price. Paying cash tends to make people see the price first and foremost.

Personally, I have not eliminated all use of credit or debit cards, but I do carry and spend cash – it cuts spending. And I NEVER charge what can’t be paid off before the end of the month.

Mistake #9 – Treating your retirement accounts like any other bank account

No, that 401(k) is not a bank account. While you can borrow from your 401(k) at commercial lending rates, doing so is unwise. When you do, the amount borrowed stops earning at the market rate. You are “paying yourself interest,” but you are also robbing yourself. Keep your retirement accounts set aside for that one purpose except for the direst of emergencies. You should have an emergency fund of at least six-month living expenses that is readily available and can be used to meet the requirements of most emergencies.

That also means that when you change jobs, you should not cash out your 401(k) and spend the money. There is a 10% penalty in doing so and that cuts heavily into your retirement plans. All you should ever do is roll the 401(k) over into an IRA. By cashing in your 401(k) you lose years of savings and progress. The cost of that in lost compound interest is often too great to overcome. See 8 Financial Moves to Make in Your 20’s.

Mistake #10 – Depend on debt

Biblical advice is always the easiest to give (and, unfortunately, often the easiest for people to ignore). Do NOT borrow money unless absolutely necessary. Literally, the borrower is a slave to the lender. Proverbs 22:7. For some purchases, paying over time (borrowing) is necessary, such as buying a home. When you do have debt, pay it off in the shortest possible time, get out of the bondage of debt. See What About The Problem Of Debt? and What About Debt?

The simple truth is that you are planning for an uncertain future, but the future is going to happen whether you plan and prepare or not. Do the best you can – and start today. If you don’t know where or how to start, give us a call. At The Idlewild Foundation we love to talk about God, you, your money, and your future.

About the Author

John Campbell has retired from a 40-year legal practice as a trial attorney in Tampa. He has served in multiple volunteer roles at Idlewild Baptist Church in Lutz, Florida, where he met Jesus. He began serving as the Executive Director of the Idlewild Foundation in 2016. He has been married to the love of his life, Mona Puckett Campbell, since 1972.

Make This A Legacy Year for You

There is a song I love that was sung by Steve Green, Find Us Faithful. It is a great encouragement as he beautifully sings,

We’re pilgrims on the journey
of the narrow road,
and those who’ve gone before us
line the way.
Cheering on the faithful,
encouraging the weary,
their lives a stirring testament
to God’s sustaining grace.

Surrounded by so great
a cloud of witnesses,
let us run the race
not only for the prize,
but as those who’ve gone before us.
Let us leave to those behind us,
the heritage of faithfulness
passed on thru Godly lives.

It is the chorus of that song I especially love,

O may all who come behind us
find us faithful;
may the fire of our devotion
light their way.
May the footprints that we leave,
lead them to believe,
and the lives we live
inspire them to obey.
O may all who come behind us
find us faithful.

What a great expression of Christian legacy. Legacy is a topic I have written about several times because I have heard interest from readers and people I speak with on behalf of The Idlewild Foundation. Don’t wait until “next year,” “next month,” or even “next week. Start today and make this a year in which you focus on how you will be known and remembered. May those who follow in your footsteps find you faithful!

Here are a few ideas to start to complete your legacy.

Think about your family. As only three of an endless number of possibilities:

  1. Can you help provide a Christian education for grandchildren? 
  2. Is a family member considering adoption but struggling with the cost
  3. Is there a family member with special needs who could use some support? ?

Spend a few minutes and think back to the last missions conference you attended. At Idlewild we call them Global Impact Conferences.  Think of a booth you visited or a story you heard that excited you and warmed you heart about someone’s special service. Now write that name down. Call someone in that ministry and find out how you can offer support that will be meaningful and that will hit the sweet spot in that ministry that caught your attention. Consider joining in that ministry with more than financial support. If you are short on cash, I don’t know of many ministries that couldn’t use more prayer support, “feet on the ground” in terms of short-term missionaries, or even local administrative support.

Meet with your financial advisor or a representative of The Idlewild Foundation to learn how wise estate planning can create a tax-wise series of gifts for family and ministry and in doing that increase the net donation and the impact of the estate with a gift of highly appreciated assets such as real estate, traditional IRAs, 401(k)s, 403(b)s, or appreciated stocks or bonds to Idlewild or to the Foundation.

Consider giving to an endowment, or permanent fund, such as The Idlewild Foundation’s Permanent Fund. Such a fund can support Idlewild or the ministries of your choice indefinitely. Read more at The Idlewild Foundation’s Permanent Fund.

A donation to The Idlewild Foundation’s scholarship fund can ensure that your money will help educate an Idlewild member who is active in the ministries of the church and in a small group, and who has a financial need to complete college or attend a technical or vocations training course. The Idlewild Foundation has given out hundreds of scholarships totaling over $1 million in seven years and will continue as long as faithful people give to this worthy fund.

Please consider a legacy gift that will demonstrate your faith and light the way for those who follow you. In this very difficult world, your display of your faith, your legacy, may make an eternal difference for many.

To learn more, contact us at The Idlewild Foundation at (813) 264-8713. It is our ministry and legacy to help you find and support yours.

About the Author

John Campbell has retired from a 40-year legal practice as a trial attorney in Tampa. He has served in multiple volunteer roles at Idlewild Baptist Church in Lutz, Florida, where he met Jesus.  He began serving as the Executive Director of the Idlewild Foundation in 2016.  He has been married to the love of his life, Mona Puckett Campbell, since 1972.

Strategic Estate Planning

The Idlewild Foundation started with a mission to promote planned giving, strategic estate planning. Estate planning can be complex because it involves the U.S. Tax Code, a set of laws Congress regularly “simplifies.” In fact, Congress has simplified the U.S. Tax Code, Title 26 of the U.S. Code (26 USC) so well that it is now only 24 megabytes in size with more than 3.4 million words and over 7,500 letter-sized pages with 60 lines each! Check it out at U.S. Tax Code On-Line.

That’s intimidating to even the best and the brightest; however, that is not an excuse to take no action. To want to do something but to end up doing nothing means you may have had good intentions but not good enough.

The smallest good deed is better than the grandest good intention. 

 Duguet

James, the half-brother of Jesus said as much:

James 2:14-17
14     What good is it, my brothers and sisters, if someone claims to have faith but has no deeds? Can such faith save them? 
15     Suppose a brother or a sister is without clothes and daily food. 
16     If one of you says to them, “Go in peace; keep warm and well fed,” but does nothing about their physical needs, what good is it? 
17     In the same way, faith by itself, if it is not accompanied by action, is dead.

The Apostle John agreed:

1 John 3:18
18     Dear children, let us not love with words or speech but with actions and in truth.

Modern proverbs agree because we all know that “actions speak louder than words,” “talk is cheap,” and “no one ever climbed a hill just by looking at it.”

In the area of stewardship, actions also speak louder, much louder, than words. It is not enough to want or intend to be a good steward. It takes time, effort, thought, and study in the form of wise planning. The wonderful thing about this stewardship is that you do not have to do it by yourself, in fact, you shouldn’t. Seeking wise counsel is not only Biblical, it is simply silly not to. Proverbs 15:22. That is especially true when the counsel is without cost. At The Idlewild Foundation we can help and our help and guidance is without cost to you.

All believers are called by God to be shepherds of the church of God, which Jesus “bought with his own blood.” Acts 20:28. Good shepherding requires that we be good stewards of the resources God has entrusted to us. We need to be skillful and deliberate in supporting the mission and ministry of Idlewild. 

Planning to be a good steward and taking the steps to actually carry out those intentions and plans are areas where The Idlewild Foundation can help. The topic of stewardship and estate planning means a lot more than just having a will. Any plan should involve a family conference involving all of your family affected by those plans.

Ultimately, making the right decision will allow you to find the greatest joy, 2 Corinthians 9:7,  and at the same time you can know that God has been well-served and you have done your part. This is a blessed opportunity with which we can help, don’t let this opportunity pass you by.

Opportunities Missed (or The Curse of Permanent Potential)
There was a very cautious man
Who never laughed or played
He never risked, he never tried
He never sang or prayed
And when he one day passed away
His insurance was denied
For since he never really lived
They claimed he never died.

About the Author

John Campbell has retired from a 40-year legal practice as a trial attorney in Tampa. He has served in multiple volunteer roles at Idlewild Baptist Church in Lutz, Florida, where he met Jesus.  He began serving as the Executive Director of the Idlewild Foundation in 2016.  He has been married to the love of his life, Mona Puckett Campbell, since 1972.

How to Give and Keep at the Same Time

A Gift That Can Provide You with Income for Life

The tax laws of the U.S. are a mystery to almost all U.S. citizens. Their complexity is so great that even tax lawyers end up arguing the fine points. But there are many opportunities that are clear, and one of those opportunities allows you to make a charitable gift that will pay you income for your life! Instead of living off the income stream from REITs, CDs, or dividends, you can have a guaranteed and stream of income while also making a charitable donation and possibly gaining a deduction.

There are two life-income gifts you can make, the charitable remainder trust and the charitable gift annuity. They are significantly different.

The charitable remainder trust

A charitable remainder trust is the more complicated of the two. It can be funded with stocks and bonds, real estate or other appreciated assets. The assets are donated into a charitable trust, with the trust making annual payouts based on its market value.

The charitable lead annuity

The charitable gift annuity is similar to a commercial annuity, except part of the gift of either cash or stock qualifies for a charitable tax deduction. In exchange, you get a set amount of the original gift as a payment for life; the percent is determined by your age at the time the gift is made. Even better, a portion of the payments you receive are tax free.

Then, when you pass away, Idlewild Baptist Church can be made the residual charitable beneficiary. That means that at the time of your death, all remaining funds go to Idlewild in your name.

We recommend you contact The Idlewild Foundation, by calling at (813) 264-8713. We can recommend an adviser who can help provide you and your attorney with information to help you make the gift that is best for your financial needs and circumstances.

About the Author

John Campbell has retired from a 40-year legal practice as a trial attorney in Tampa. He has served in multiple volunteer roles at Idlewild Baptist Church in Lutz, Florida, where he met Jesus.  He began serving as the Executive Director of the Idlewild Foundation in 2016.  He has been married to the love of his life, Mona Puckett Campbell, since 1972.

It Isn’t That Hard to Give

Let’s imagine a man who wanted to save time and money but still be generous and let’s call him John Doe. John had a 401(k) and non-qualified savings and investment accounts he had built up by being a good and wise steward during his working years. The 401(k) rolled over into an IRA upon his retirement. His IRA was valued at about $200,000. His non-qualified savings and investment accounts were also valued at about $200,000.

Being a generous man, John wanted to leave $200,000 to his church upon his death. He also wanted his two children to receive a reasonable amount but not so much that they might lose their work ethic.

John was careful and frugal while he worked and nothing changed in his retirement. He saved a thousand dollars and did his will by himself online. His will was written simply and said exactly what he wanted, $200,000 to his church from his bank accounts, the sale of his car and the rest of the $200,000 from a non-qualified investment account. The IRA was to go equally to his two children.

That was reasonable and simple. There was no need to pay some expensive estate planning attorney, was there?

Unfortunately, John passed away before he discovered that being frugal isn’t always being wise. The problem is that his “estate plan” was too simple and wasn’t a plan at all. That “plan” was unwise, did not consider taxes, and reduced substantially the money John’s children inherited. Here’s why.

John’s church got the first $200,000, mostly out of his banking accounts, his car, and a few investments. These were low or no appreciation assets and accounts. His children got the rest, including a large tax bill for the IRA because of the deferral of income and the appreciation of the investments within the IRA. Rather than have a do-it-yourself “plan,” John should have funded his bequest to his church with his IRA. That would have reduced the tax due to the IRS because the church would not have had the same tax bill as the children.

The result of John’s “plan” was higher taxes and a reduction in what his children would receive probably by $10,000 each, perhaps more, depending upon the tax brackets of the children and the amount of appreciation of the IRA.

One of the easiest and best bequests to make to a church or charity, whether before or after death, is a highly appreciated asset, including retirement accounts like 401(k)s, 403(b)s, and traditional IRAs, investment accounts that have held stock for a while during a rising market, and real estate that has been held for a long time. These gifts to a charity cost the donor nothing and the IRS comes up with far less than if the bequests or gifts were to a person.

There can be hidden taxable income in a number of different assets, including life insurance, CDs, Savings Bonds, nonqualified stock options, and deferred payments of capital gains, among others, under our complex tax laws.

In most cases, naming Idlewild Baptist Church as the beneficiary of these types of assets, especially when they are highly appreciated and contain deferred income, gives the estate and heirs the best tax benefits, avoiding both income and estate taxes.

Life insurance also can be an excellent gift, too. Naming the church as a primary or contingent beneficiary of an existing or new life insurance policy can result in a federal estate tax deduction for the full amount of the proceeds payable to the church regardless of policy size.

This is good general advice, but you need to be aware that every person’s situation is unique and that your particular circumstances and investment and retirement investments might change the recommendation for the best results. Seek the advice of a qualified tax or financial adviser before finalizing your paperwork.

For more information and detail, call us at (813) 264-8713. We may not be able to answer your question but we can refer you to a qualified Christian adviser who can.

About the Author

John Campbell has retired from a 40-year legal practice as a trial attorney in Tampa. He has served in multiple volunteer roles at Idlewild Baptist Church in Lutz, Florida, where he met Jesus.  He began serving as the Executive Director of the Idlewild Foundation in 2016.  He has been married to the love of his life, Mona Puckett Campbell, since 1972.

Save $ in 2020

Saving money is a challenge. The money seems to (and does) build up slowly and the temptations to cheat and spend rather than save are like dieting temptations, easy to find and hard to resist. Here are a few practical ideas to keep your savings increasing and to help you hold the line on spending. When you save on one of the ideas here, save the money toward an emergency savings account, your retirement or a special trip and vacation.

Try these ideas and save:

1. Your car insurance rises every year even though your car is older and is worth less. You would think at least the collision coverage would decrease. It will, if you decide to shop around at least every three years. You may not want to decide based upon premium cost alone, because there is a lot to be said about receiving good service, but if money is tight, shop around. 

2. If you have emergency savings, go with high deductible collision coverage. You can save a lot that way. I will admit it may cost you if you have an at fault accident, but if you go several years without an accident, your savings will far exceed the amount of your deductible. If you don’t have an emergency savings fund, start one now.

3. Shop your homeowners coverage as well. Those premiums tend to rise more than the value of your home. Home insurers, like car insurers, count on your not wanting the hassle of changing carriers.

4. Drop your magazine subscriptions. Check and you may find the very same magazine is available at your nearest public library. Or, alternatively, spend a quiet evening at a local bookstore, reading your favorite magazines for free.

5. Hold a garage sale. Go through your closet and find clothes you have not worn in a year. The chances are you will never wear it if you haven’t worn it in a year. Pull the junk out of your closets you never use and out of the attic that you stuffed up there and see if there is someone else who wants your junk. You won’t make a lot, but you will make more than doing nothing will make for you. Alternatively, try eBay or sell online. A second alternative is for you to donate what you have to a Christian thrift store and take the deduction on your tax return if you are able.

6. Check your Internet, cable and phone plans. You can almost always improve your plan and save money if you check once a year. Ask yourself if you really need that landline. We dropped ours over a year ago and discovered we received fewer junk calls during dinner.

7. Get a free energy audit from your power company and see where your electric use can be trimmed. Consider adding attic insulation if your house is old, many types of older insulation settle and lose R-value, costing you money every month. Alternatively, you could do something really radical and turn off the lights when you leave a room.

8. Drop your gym membership and take up walking. It is easier on the knees and hips than jogging, can be done well into your 70’s, and is free!

9. Keep your tires properly inflated, put the right gas in your car and maintain it based upon the manufacturer’s recommendations.

10. If you use AAA for emergency roadside service, go to an AAA location and check out their available gift cards. You get a 3 to 5% credit in AAA dollars towards your next year AAA bill. If it is a card for a restaurant you are going to eat at anyway, a store you will shop at anyway (or even Amazon Smile), or a gift card you would give as a gift anyway, you will save an annual AAA fee in a fairly short time, certainly less than a year.

11. While I am on the topic of gift cards, buy them at a discount from a discounter like giftcardgranny.com. You can at times find meaningful discounts on hundreds of gift cards including Walmart, Target, and many large retailers.

12. Buy used, not new. A used car, if checked out carefully, is a great savings over a new car. New cars lose thousands of dollars almost the same moment you drive the car off the lot. If the car isn’t too old, you may still have some warranty left – always check. If buying a used car, always check the obvious things such as the tires. Many dealers will put new tires on a car if you spot a worn or repaired tire.

13. Used books are readily available at thrift stores, or, even better free books, magazines and videos are available at the public library.

14. Buy an Entertainment Book and eat out for 50% at many restaurants. Try Entertainment Books and see what restaurants and services are covered in your area. In the Tampa Bay area there are over 150 restaurants and services offering substantial discounts. You quickly save the cost of the book, try new places and then save a lot more.

15. Save without the hassle of coupons. There is a rather remarkable website worth checking – Savingstar. You can go to their free website, check the products you want to buy from a store and get cash back after you shop. You can link your store loyalty card or upload the receipt and save. The stores available can be seen from the site and include Publix, WalMart, Target, CVS, Walgreens and literally hundreds of other retailers.

Saving just requires that you try. The problem is that we tend to get so busy, that time is a commodity that is hard to find. But if you can find the time to try a few of these ideas here, you can save a lot. If you have additional ideas, call or email us and we will pass them on.

About the Author

John Campbell has retired from a 40-year legal practice as a trial attorney in Tampa. He has served in multiple volunteer roles at Idlewild Baptist Church in Lutz, Florida, where he met Jesus. He began serving as the Executive Director of the Idlewild Foundation in 2016. He has been married to the love of his life, Mona Puckett Campbell, since 1972.

A Great Start to 2020

New Year’s Resolutions to Kick-Off the Year

What are your New Year Resolutions for 2020?  Lose weight – check, exercise more – check, and get in better shape – long overdue! They are there for me almost every year. But then life happens! Sometimes I keep such a resolution for a few weeks or maybe even a few months with strong encouragement. After that, the busy days of spring begin to take over.

Instead, join me and make one of your resolutions for 2020 to review family financial and estate plans. Significant life changes (and even significant market changes) are something that should trigger in our minds the question, “Do I need to change my will or trust?” or “Should I change any of my beneficiary designations?” If you need an easy way to keep track of your bequests and beneficiary designations on bank accounts, IRAs and financial or investment accounts, make a list. It is best done on a computer file so you do not have to re-do the entire document each time there is a change, but then print it and keep it with your estate and financial documents just in case your computer files are somehow lost. For a few additional thoughts on this topic, see A Few Estate Planning Pitfalls (especially #3) and A Few More Estate Planning Pitfalls.

Also, think about adding a few fresh ideas in which your entire family can become involved! Here are some things we are trying that I can offer as suggestions to prayerfully consider.

  1. Serve: Serve together as a family, a small group or just as a group of friends.  Find a ministry that touches your heart and about which you can be passionate. Schedule yourself to serve regularly in this ministry with your family, a group of friends, or involve your small group. On a simpler note, you can visit a friend you haven’t seen in a while, perhaps someone out with an illness or injury. Always remember that stewardship is a L.I.F.E activity that is not limited to dollars and cents. It involves your Labor, your Influence, your Financial resources, and your Expertise, your entire L.I.F.E. Stop by the MVNT booth in the Gatheria at Idlewild. Learn how you can discover God’s gifting to you and put your gift(s) into joyful service. You can give an hour a week – yes, you really can.

2. Broaden your view: Look for new opportunities to broaden your stewardship. Never neglect giving your tithe to your home church. Check out Does the New Testament Teach Tithing? Know that God has also called us to give over and above the tithe. Read and reflect upon Deuteronomy 15, Matthew 23:23, and Luke 12:33-34.

3. Give wisely: When you find a ministry that touches your heart, consider giving as well as serving. You can give in different ways. Instead of just monetary giving, consider giving an appreciated asset, stock, or a piece of property. This type of giving may be better for both you and the charity than if you sold and donated the net proceeds. This strategy may reduce your tax burden and increases the amount the charity receives. Not sure how to do this? The Idlewild Foundation can show you how. Just give us a call at (813) 264-8713.

4. Learn about Giving Funds: Explore the possibilities of a Donor Advised Fund that will allow you a deduction now, but choose who you want to support and how much you will give at a future date. This kind of fund can be an efficient means of setting up recurring donations and makes record keeping for taxes easy. Learn more at Ways to Give, or just give us a call.

5. Share your experience with others: If you have a life example of how God has blessed you and how you have given back to Him, share your story. Tell your small group, your friends, and your family about how you’ve been blessed and how you’ve been able to bless others.

6. Accelerate your life: In 2020 as Idlewild continues to accelerate its debt payments and kingdom investments, join Pastor Ken in that goal. Be a part of Accelerate! Give over and above the tithe to accelerate payment of the last of the debt and allow Idlewild to enter a new phase of even more service to the kingdom.

Here’s another idea! Why not spend some time reviewing your spending for 2019? By looking at your bank and charge card statements you’ll get a pretty good picture of where your money was spent and what your priorities have been. Did you find ways to glorify God through any of your spending? Did your spending in 2019 give more glory to yourself than to God? Could you do better? Give God the credit He is due. He made your income and your abilities possible.


Deuteronomy 8:18
18     But remember the Lord your God, for it is he who gives you the ability to produce wealth …


Give God the credit He is due. He made your income and your abilities possible.

Take some time to sit down with your family and discuss ways to manage your money more effectively. Consider speaking with someone from the Stewardship Ministry of Idlewild Baptist Church or with us at The Idlewild Foundation. We can give you tips and ideas in managing your money. And don’t worry. You won’t be bludgeoned until you agree to give money to the Foundation! On the other hand, you will learn ways that you can further God’s kingdom by sharing His blessings with others – with open hands!

You can contact us at The Idlewild Foundation, (813) 264-8713 or email me at jcampbell@idlewild.org. Make 2020 a year to celebrate!

 

About the Author

John Campbell has retired from a 40 year legal practice as a trial attorney in Tampa. He has served in multiple volunteer roles at Idlewild Baptist Church in Lutz, Florida, where he met Jesus.  He began serving as the Executive Director of the Idlewild Foundation in 2016.  He has been married to the love of his life, Mona Puckett Campbell, since 1972.