We sincerely hope you have been enjoying this week’s Money $eries and they have made an impact on you. We have been blessed to share tips, facts, prayers, and the Word of God on such a crucial, favorite topic in this world–money. This evening we are presenting a special Q (Tannika) & A (Shalamaar). Shalamaar Muhammad is a Commercial Banking Professional with JP Morgan and fellow Christian who loves to share financial wisdom with others. Enjoy our Q & A as well as take notes.
Tannika: What is the one mistake people tend to make the most with their finances?
Shalamaar: Live outside their means. People tend to buy things that they don’t need to impress people they don’t like.
Tannika: As a fellow believer, what are some things you want Christians to understand about money.
Shalamaar: As a fellow believer, I would say remember that the love of money is the root of all evil. Money should be looked at and used as a tool to meet your needs and the needs of others. Also give to purpose and not just need all the time. People who repeat the same cycles of bad money management usually have an underlying issue that needs to be addressed and resolved, and if it isn’t, the need will always continue.
Tannika: What are the major areas of finance people should also be concerned with than just paying bills?
Shalamaar: Other than paying bills, use your finances to save (emergency fund, nest egg).
Invest- Earn a return on your money.
Give- Help meet others’ needs as God meets yours.
Tannika: Dave Ramsey, financial guru and Christian, encourages every one to have an emergency fund. Why do we fail at building an emergency fund?
Shalamaar: We fail at building an emergency fund because we don’t want to make the necessary sacrifices to do so. Think about how many restaurant meals, unnecessary shopping trips, vacations and other luxuries we could have given up over a year to build the fund. A year goes by so fast, so cutting back for a while is a minor sacrifice in the grand scheme of life. Letting go of instant gratification can help build up that fund and save you the headache of looking for additional funds at the time of emergency.
Tannika: Explain what it means to invest your money and the best way to do so?
Shalamaar: Investing your money can mean so many things. In the most simple terms, it means to earn a return on your money. It can be a conservative investment such as a simple interest savings or CD or complex such as investment in stocks and bonds. It’s best to speak with a professional such as a Financial Advisor to learn more about what investment best suits you.
Tannika: What is the best financial advice you received growing up?
Shalamaar: The best financial advice I received growing up was not to use credit as extra money. Credit can be helpful but there are also dangers if you are not responsbile, live beyond your means, or do not have self-control.
Dangers of Credit
- Overdoing it; borrowing more than you can afford to repay.
- If you don’t make your payments on time, you’ll damage your credit record.
- Losing money on late fees.
- Having to pay additional interest.
- Difficulty getting loans or credit in the future.
Once your credit is damaged, it can take years and tons of extra money to restore it.
Wow, thanks to Shalamaar for blessing us with loads of knowledge about emergency funds, investing and debt as well as the dangers of credit!
What are you taking away from today’s post? How will you apply what Shalamaar has shared with us to your new financial journey?
Jeremiah 17:7-8 NIV “But blessed is the one who trusts in the Lord , whose confidence is in him. They will be like a tree planted by the water that sends out its roots by the stream. It does not fear when heat comes; its leaves are always green. It has no worries in a year of drought and never fails to bear fruit.”
Luke 16:10-12 “Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much. So if you have not been trustworthy in handling worldly wealth, who will trust you with true riches? And if you have not been trustworthy with someone else’s property, who will give you property of your own?
Father, thank You for Your wisdom. Let me seek You and Your wisdom as well as Your Will to be done in my life. Help me to, for here on out, see money the way You do and to use it for Your glory and in Your wisdom. In Jesus’ name, amen.