James 4:13 and 14: “Come now, you who say, ‘We will go into such and such a town and trade and make a profit’— yet you do not know what tomorrow will bring.”

A lot of folks are feeling uneasy about the future. How many more interest rate hikes can the economy take before sliding into recession? And what about the rollercoaster stock market?  

Well, if you don’t know what the future holds, it just means you should prepare and set certain priorities for managing your money. We’ll share some of them now. Not all will apply to you, but there’s probably something here for everyone.

MONEY MANAGEMENT PRIORITIES

1. Tackle that debt.  First, if you’ve been procrastinating about getting out of debt, now’s the time to buckle down and do something about it. Interest rates on credit cards and variable rate loans like HELOCS have risen dramatically, so make paying down consumer debt an absolute priority.

You can avoid the sting of rising credit card interest by contacting Christian Credit Counselors. They have pre-negotiated agreements in place with credit card issuers to lower your interest rates, and you can take advantage of them when you sign up for a debt management plan. They’ll help you get rid of credit card debt 80% faster than trying to do it by yourself. You can get more information at ChristianCreditCounselors.org.

2. Re-adjust your budget.  We say “re-adjust” because you’ve probably already tweaked your spending plan to allow for last year’s breathtaking inflation. But even though we’re told inflation has fallen to below 4%, food prices have increased close to 7% over last year. So check to see where you’re overspending and make adjustments.

By the way, if you haven’t downloaded the FaithFi app yet, this is a great time to do it. It offers three different ways to budget your money and provides the best biblically-based financial content on the web. So download it today.

You might also have to add money to your housing category. Lenders are raising monthly mortgage payments to accommodate higher property taxes. Those tax hikes are the downside of rising property values, which are only on paper. Property tax increases are quite real, however, so you have to account for them.

Now, you’ll probably need to make up for these higher costs, and you can do that by shopping more carefully. Take advantage of weekly sales and coupons at the grocery store. For online purchases, use an app like Honey or Capital One Shopping to find the best deals and coupon codes.

Now, if you’ve done all that and find you now have a few extra dollars, don’t throw a party. Use the extra cash to …

3. Beef up your emergency fund.  If you don’t have an emergency fund, that’s your number one priority now. You’ve got to start putting money away for unplanned expenses, or you’ll always be forced to borrow and go into debt when they occur.

Open a savings account at an online bank to get the best interest rate, and start tucking away something from every paycheck. Set a goal of $1500. Then one month’s living expenses. Eventually, you want to have 3 to 6 months’ worth of living expenses. That way you’ll be able to ride out a job loss or medical condition that prevents you from working for a time.

4. Don’t let interest rates keep you from buying a home - IF - you’re ready.  If you’re a prospective homebuyer, especially if you’re looking to purchase your first home, don’t let current interest rates scare you away. But again, that’s IF — and ONLY if — you’re in a good financial position to buy a home. 

What does that mean? You should have 20% saved for a downpayment to avoid private mortgage insurance. You also need to work up a budget that reflects your total housing costs, including your mortgage. It should not exceed 25% of your take-home pay.

That will show you how much house you can afford within that budget. Stick to that number. Many lenders will be willing to loan you more than that number, but don’t get carried away. Keep your payments within your budget, not the bank’s.

5. If you’re considering switching jobs, NOW may be the time to do it.  Employment remains relatively strong, but monthly job creation numbers are starting to come in below expectations. 

That tells us two things: First, if you’ve been planning to look for a new job, do it now while the economy is still creating jobs. And second, if you plan on staying where you are, do what you can to increase your skill set to make yourself more productive and valuable to your company.

It’s always a good time to do that — but now especially. Ask the boss for an opportunity to do more and be willing to take on new assignments.

So those are your priorities for the uncertain times we live in. We hope you’ll find them useful.

On today’s program, Rob also answers listener questions: 

• When does it make sense to take money out of savings to pay down your mortgage? 
• How do you determine the best way to position assets as you prepare for retirement? 
• When is it a good idea to convert a garage into an efficiency apartment? 
   

Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network as well as American Family Radio. Visit our website at FaithFi.comwhere you can join the FaithFi Community, and give  as we expand our outreach.