Giving

Giving can be one of the most fulfilling parts of the Christian life. Throughout the Bible we are encouraged to be generous. In fact, there are more verses related to giving than any other subject dealing with money.

l. It is important to give with the proper attitude.
God evaluates our giving based on our attitude. Jesus said in Matthew 23:23: "Woe to you, teachers of the law and Pharisees, you hypocrites! You give a tenth of your spices - mint, dill and cummin. But you have neglected the more important matters of the law - justice, mercy and faithfulness. You should have practiced the latter, without neglecting the former. " The Pharisees had been careful to give the correct amount - down to the last mint leaf in their gardens. However, because they did not give with the proper attitude, the Lord rebuked them.

Give because you love.
For giving to be of any value to the giver, it must be done out of love. "If 1 give all l possess to the poor... but have not love, I gain nothing " (1 Corinthians 13:3). God the Father set the example of giving in love. "For God so loved the world that he gave his one and only Son " (John 3:16). Because God loved, He gave.

The best way to give in love is to give each gift as if you are giving it directly to Jesus Christ. When you give to the Lord, it can be an act of loving worship because God is our Savior and faithful provider.

Give cheerfully.
"Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giver" (2 Corinthians 9:7). The word translated "reluctantly" means sorrow or grief. The word translated "cheerful" means joyful and happy. We are not to give reluctantly; rather, we should give because we are joyful for the opportunity to help others.

2. Give to God first.
Part of our responsibility as a faithful steward is to give back to God a portion of what He has entrusted to us. "Honor the Lord from your wealth, with the first fruits of all your crops" (Proverbs 3:9).

God doesn't need our money, but we need to give. Giving to the Lord is a reminder that God owns all we possess and that He is our Provider. It is also an indicator of our obedience to God's principles.

3. Amount to give
A tithe, or ten percent of our income, is the foundation of our giving. "Yet you rob me ...in tithes and offerings. You are under a curse - the whole nation of you - because you are robbing me" (Malachi 3:8-9).

In addition to the tithe, God's people in the Old Testament gave offerings. The New Testament builds on the foundation of tithes and offerings, teaching us to give in proportion to what we receive.

Jesus praised sacrificial giving. "A poor widow came and put in two very small copper coins, worth only a fraction of a penny ...Jesus said, `I tell you the truth, this poor widow has put more into the treasury than all the others. They all gave out of their wealth; but she, out of her poverty, put 1 n everything-all she had to live on "' (Mark 12:42-44).

We are convinced that a tithe is the minimum amount we should give to the Lord, desiring then to give more than the tithe as the Lord prospers or directs us.

4. Blessings of giving
The Lord intends for giving to be a blessing to the giver. "Remembering the words the Lord Jesus himself said: `It is more blessed to give than to receive "' (Acts 20:35). If a gift is given with a proper attitude, the giver benefits in four ways.

(1) Giving draws our hearts toward Christ.
Above all else, giving directs our heart to Christ. "For where your treasure is, there your heart will be also" (Matthew 6:21). This is why it is necessary to give each gift to Jesus Christ. When you give your gift to Him, your heart will automatically be drawn to the Lord.

(2) Giving develops godly character and helps us conform to Christ.
Our heavenly Father wants His children to be conformed to the image of Jesus Christ. The character of Christ is that of an unselfish giver. Unfortunately, humans are naturally selfish. One of the ways we become conformed to Christ is by giving.

(3) Giving allows us to put treasures in heaven.
Matthew 6:20 reads, "But store up for yourselves treasures in heaven, where moth and rust do not destroy, and where thieves do not break in and steal" (Matthew 6:20). The Lord wants us to know that we can invest for eternity. Paul wrote, "Not that 1 am looking for a gift, but I am looking for what may be credited to your account" (Philippians 4:17). When we give, there is an account for each of us in heaven, an account we will enjoy for eternity.

(4) Giving can produce a material increase to the giver.
"One man gives freely, yet gains even more; another withholds unduly, but comes to poverty. A generous man will prosper; he who refreshes others will himself be refreshed" (Proverbs 11:24-25).

Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously...God is able to make all grace abound to you, so that in all things at all times, having all that you need, You will abound in every good work. As it is written: `He has scattered abroad his gifts to the poor; his righteousness endures forever. 'Now he who supplies seed to the sower and bread for food will also supply and increase your store of seed and will enlarge the harvest of your righteousness. You will be made rich in every way so that you can be generous on every occasion" (2 Corinthians 9:6-11).

These verses teach that giving results in a material increase: "will also reap generously... in all things at all times... having all that you need... you will abound... will supply and increase your store of seed ...enlarge the harvest ...you will be made rich in every way. " But note why the Lord is returning an increase: "so that you can be generous on every occasion. " The Lord provides a material increase so that we may give more and have our needs met at the same time.

5. To whom should we give?
Scripture encourages us to give to the work of Christ and to the needy.

Give to the local church, Christian workers and ministries.
The Bible tells us to give to the church and those serving in ministry. "Pastors who do their work well .should be paid well and should be highly appreciated, especially those who work hard at both preaching and teaching" (1 Timothy 5:17, TLB). "The Lord has commanded that those who preach the gospel should receive their living from the gospel" (1 Corinthians 9:14).

In our opinion, a minimum of ten percent of our income should be given to our church. But we also believe we should give to others who are teaching us God's Word. "Anyone who receives instruction in the word must share all good things with his instructor" (Galatians 6:6).

Give to the poor.
Hundreds of verses deal with meeting the needs of the poor. In Matthew 25:34-45 we learn one of the most exciting truths in Scripture. "The King will say... 'I was hungry and you gave me something to eat, I was thirsty and you gave me something to drink'... then the righteous will answer him, 'Lord, when did we see You hungrv, and feed You, or thirsty and give you something to drink?"... The King will reply, 'I tell you the truth, whatever you did for one of the least of these brothers of mine, you did for me.' Then he will say to those on his left, Depart from me, you who are cursed, into the eternal fire... I was hungry and you gave me nothing to eat, I was thirsty and you gave me nothing to drink ...whatever you did not do for one of the least of these, you did not do for me. "' Jesus, the Savior of the world, identifies Himself with the poor. When we give to the poor, we are actually giving to Jesus.

[The text is from "Principles of Financial Success", a seminar presented by Crown Financial Ministries.] ¶ 1:16 PM

Is your MasterCard safe?

You've probably heard the news: last week, over 40 million million credit card accounts of MasterCard International were compromised by a security breach in the U.S.

In the Philippines, there are around 3.5 million MasterCard users. MasterCard Philippines said about 2,000 of those were affected, or 0.03% of the total. Owners of the accounts have already been informed and their cards will be replaced.

The hacking incident happened at a third-party processor of payment card data. It's shocking, to say the least. But research shows that credit card fraud, at least in the U.S., is actually declining. Unbelievable?

Also, in incidents such as this security breach, only 2% of affected accounts experience fraudulent activity. Still, you can't just brush it off. To make doubly sure your account is safe (whether it's MasterCard, Visa, or American Express, since the latter two have been affected as well), follow this advice:

• Check your balance and recent transactions. You can do this online (if your issuing bank Internet facility allows you to view your credit card account) or through the phone (most banks have 24/7 phone-banking services).
• Monitor your credit card statements thoroughly, not just now but always.
  

Remember, this is only one way wherein your credit card account could be stolen. Identity thieves have so many tools and schemes, including phising and hacker attacks. And don't forget good old physical theft, which happened to us. The worst part is that Citibank Philippines forced us to pay the fraudulent transactions because the stolen card was reported after the transactions were made, pointing that this is part of their terms and conditions. We tried our best to contest it but they won't back down.

In the U.S., the cardholder is liable only to the first $50. Here, you get screwed not just once (some thief use your card), but twice (your credit card company will force you to pay). There should be new legislation to protect consumers. ¶ 7:19 PM

Debt

The use of debt by individuals is growing rapidly in many countries around the world. Debt is money which one person is obligated to pay to another. Debt includes money owed on credit cards, bank loans, loans from family and friends, and property loans or mortgages.

1. God's Perspective on Debt
Debt is discouraged.

The Bible does not say that it is sin to be in debt, but it does discourage the use of it. "Let no debt remain outstanding" (Romans 13:8). The reason the Lord discourages debt is found in Proverbs 22:7, "The rich rule over the poor, and the borrower is servant to the lender. " The Lord wants His people to be free to serve Him, and not be financial servants to lenders.

In the Old Testament, being out of debt was one of the rewards for obedience.

"If you fully obey the Lord your God and carefully follow all his commands I give you today, the Lord Your God will set you high above all the nations of the earth. All these blessings will come upon you. You will lend to many nations but will borrow from none" (Deuteronomy 28:1-2, 12).

2. How to get out of debt
Here are some steps for getting out of debt.

(1) Pray.
In 2 Kings 4:1-7, a widow was threatened with losing her children to her creditor, and she asked Elisha for help. Elisha told her to borrow empty jars from her neighbors. The Lord multiplied her only possession, a little oil, and all the jars were filled. She sold the oil to pay her debts and free her children.

The same God who provided for the widow is interested in helping us becoming free from debt. The most important step is to pray, seeking the Lord's help.

(2) Accumulate no new debt.

(3) List all your debts and everything you own.
List your debts to determine your current financial situation. Then decide whether you should sell any possessions to reduce debt.

(4) Use a written spending plan or budget.
Develop a written spending plan to ensure that spending does not exceed income. Some people need to lower their spending to get out of debt.

(5) Establish a repayment plan for each debt.
Most creditors are willing to work with people who honestly want to repay their debt, so communicate regularly and follow through.

Try to pay off the smallest debts or those with the highest interest rate first. Once you have paid off the first debt, add that payment amount to the regular payment for the second one you want to pay off. Then, when that one is paid off, apply both payments to the next debt and so forth until all debts are paid.

(6) Consider earning additional income.
Many people hold jobs that simply do not produce enough income to meet their needs even if they spend wisely. They may need to earn additional income to stay out of debt.

3. When is debt acceptable?
Scripture is silent on when using debt is acceptable. In our opinion, it is permissible to owe money for your business, for the purchase of a home, or for education for your vocation. If you borrow for any of these uses, follow these guidelines:

o Make debt the exception and not the rule.
o Plan to repay what was borrowed as soon as possible.
o Create a written repayment plan.

4. Cosigning
Cosigning relates to debt. Anytime you cosign, you become legally responsible for the debt of another. It is just as if you borrowed the money and gave it to your friend or relative who is asking you to cosign. The Bible discourages cosigning. Proverbs 17:18 reads, "It is poor judgment to cosign another's note, to become responsible for his debts" (TLB).

[The text is from "Principles of Financial Success", a seminar presented by Crown Financial Ministries.] ¶ 10:09 PM

Are long-term negotiable certificates of deposit a good investment?

Well, for one, that's quite a mouthful. If you haven't seen the newspaper ads yet, these are investment instruments being offered by Banco de Oro (the first in the country) and Citibank.

What is a long-term negotiable certificate of deposit (LTNCD) anyway? Let's break it down:

• Deposit: It's a bank deposit product. So it's insured by the PDIC (up to P250,000).
• Certificate of Deposit: Better known as a CD. So it earns interest. And it's debt instrument offered by a bank. But CDs, as we commonly think of, are short-term and non-negotiable. This is a new animal.
• Negotiable: That means you can sell them before the maturity date at the current market price.
• Long-term: In this case, we're talking about 5 years and 1 day, making the interest income exempt from withholding tax, if it's kept that long.

So it's like a deposit in that a bank issues it and it is covered by the PDIC. Yet, it's also like a bond because it's negotiable and long-term and pays interest every quarter. In other words, it's a hybrid product.

And it's marketed as a better alternative to government Treasury bills (T-bills) and to an ordinary bank deposit like a time deposit or a regular CD. Well, is it?

Let's take a look:

LTNCD vs. T-bills
1. Safety. T-bills, by nature, are safer because they are issued by the government. LTNCDs are issued by a bank, which is obviously not as safe as the government. However, they are covered by PDIC up to P250,000, so they are as safe at least up to that amount. And given the track record of the issuing banks, they are quite safe.
2. Affordability. It's not exactly true you need at least P200,000 to buy T-bills while you only need P100,000 to buy LTNCD. You can buy T-bills directly for P100,000. But you don't need that much to buy government securities. Retail Treasury Bond (RTBs) are available for as little as P5,000 (although some banks require at least P100,000). Alternatively, you can invest in fixed-income mutual funds (bond funds) for P10,000 or so, which invest in all types of government securities and corporate bonds (however, they are not insured).
3. Income. Indeed, LTNCDs have a premium over the 91-day T-bill. But look, we're comparing apples to avocados. LTNCDs are 5-year instruments; 91-day T-bills are, well, 91-day instruments. Wouldn't a long-term Treasury Bond be a better benchmark? Keeping LTNCDs for 5 years at a small premium over a 91-day T-bill doesn't sound like a great investment.
4. Liquidity. Okay, you can sell them before the maturity date. But you can do the same with government securities.
5. Taxes. Probably the only real advantage of LTNCDs is that, if you keep them for the entire period, your interest won't be subject to withholding tax. T-bills are subject to 20% withholding tax. However, if you sell your LTNCD before that, it's subject to the same 20% tax.

LTNCD vs. Time Deposit
1. Safety. Both time deposits and LTNCDs are issued by a bank, and are covered by PDIC up to P250,000. No advantage there.
2. Affordability. You need just P1,000 to put money in a 90-day time deposit.
3. Income. The rate for a 91-day T-bill is about 5-6%, add a premium and you get a rough idea what to earn from an LTNCD. Here, they are superior to a time deposit of a typical commercial bank, which offers about 4-5% for a 364-day time deposit at P100,000. But some banks, particularly savings and rural banks (disclosure: we have a rural bank), offer higher yields, such as double your money in 5 or so years time deposit products (about 15% compounding).
4. Liquidity. You're stuck with a time deposit to earn the full interest. But if you choose a short-term time deposit, as little as a month, it's practically liquid.
5. Taxes. If you place money in a long-term time deposit (5 years and 1 day), just like the LTNCD, the interest is tax-free. For short-term time deposits, it's subject to 20% withholding tax, so the net interest may actually be comparable to a short-term time deposit.

The verdict?

If you're not keeping LTNCDs for 5 years, government securities like T-bills and RTBs are still safer and better investments (as LTNCDs won't be tax-free). If you're holding on to them for the entire maturity period, compare the interest rate that you will earn from the LTNCDs not with the rate of a 91-day T-bill but with a comparable 5-year Treasury Bond or Fixed Rate Treasury Note. Even if they're subject to the 20% withholding tax, the net interest rate would be higher. So, LTNCDs still lose against government securities.

Compared to time deposits, LTNCDs may just have a comparable rate on a net basis to short-term time deposits, since they'll also be subject to withholding tax. And if you're looking at 5-year investments, you can find long-term time deposits (5 years) that offer much higher rates.

So, are LTNCDs a bad idea? Well, I don't see distinct advantages. As a comparable substitute and for diversification purposes, maybe. But as a superior alternative, I think not. ¶ 7:39 AM

Spending

There are several biblical principles that should influence our spending.

1. Learn to be content.
The word contentment is mentioned seven times in Scripture, and six times it has to do with money. Paul wrote, "I have learned to be content whatever the circumstances. I know what it is to be in need, and I know what it is to have plenty. 1 have learned the secret of being content in any and every situation, whether well-fed or hungry, whether living in plenty or in want. I can do everything through him who gives me strength" (Philippians 4:11-13). Paul "learned" to be content. We are not born content; rather, we learn contentment.

"If we have food and clothing, we will be content with that" (1 Timothy 6:8). Biblical contentment is an inner peace that accepts what God has chosen for our present financial situation. "Keep your lives free from the love of money and be content with what you have, because God has said, `Never will I leave you; never will I forsake you "' (Hebrews 13:5).

2. Learn to avoid coveting.
Coveting means craving another person's property, and it is prohibited in Scripture. The last of the Ten Commandments reads, "You shall not covet your neighbor's house. You shall not covet your neighbor's wife, or his manservant or his maidservant, his ox or donkey, or anything that belongs to your neighbor" (Exodus 20:17). In other words, we are commanded not to covet anything that belongs to anyone!

Do not determine your spending by comparing it to others. Some spend more than they can afford because they want to spend as much as their friends can afford.

3. Live simply.
Some possessions can demand so much time or money that they harm our relationship with the Lord and our loved ones. Scripture encourages us to live a quiet, simple life. "Make it Your ambition to lead a quiet life, to mind your own business and to work with your hands, just as we told you, so that your daily life may win the respect of outsiders and so that you will not be dependent on anybody" (1 Thessalonians 4:11-12).

4. Needs should be met within the body of Christ.
The early church was a model of meeting needs. "Our desire is not that others might be relieved while you are hard pressed, but that there might be equality. At the present time your plenty will supply what they need, so that in turn their plenty will supply what you need. Then there will he equality, as it is written: 'He who gathered much did not have too much, and he who gathered little did not have too little "' (2 Corinthians 8:13-15).

5. Be aware of the influence of advertising.
Many of us are exposed to advertising that creates discontentment with what we have. It often communicates the deceptive message that if we buy something we will be happy. However, the purpose of advertising is to prompt you to spend money. Seek the Lord's guidance and godly counsel when making a spending decision. If you think a purchase would not please God, do not buy it.

6. Develop and use a spending plan (budget).
We are encouraged to plan our spending and to be aware of our possessions. "Be sure you know the condition of your flocks, give careful attention to your herds" (Proverbs 27:23). Using a spending plan is a practical way to spend wisely.

[The text is from "Principles of Financial Success", a seminar presented by Crown Financial Ministries.] ¶ 3:40 PM

Mutual fund laggard

It's not surprising that the Philippines lags behind other Asian countries when it comes to the mutual fund industry. According to the AIM study, our assets under management (AUM) as of end of 2003 is a mere $792 million (as of end of March 2004, it has gone up to $1 billion), compared to Indonesia, which has $8 billion, already considered one of the smallest.

Worse, China's mutual fund industry, just 6 years old, has $20 billion AUM. To think we started in the 1950s (though it only took off in the early nineties). Here's how we fare:

1. Japan - $349 billion with 2,617 funds
2. South Korea - $250 billion with 6,736 funds
3. Hong Kong - $250 billion with 963 funds
4. Taiwan - $76 billion with 401 funds
5. China - $20 billion with 110 funds
6. Malaysia - $18 billion with 217 funds
7. Thailand - $11 billion with 333 funds
8. Indonesia - $8 billion with 186 funds
9. Philippines - $792 million with 21 funds

Why are we such laggards? Well, for one, the requirements to put up an investment company are quite prohibitive (at least P50 million in capital), opening the business to just a few players. There's not much public education on and promotion of mutual funds. And, frankly, Filipinos have a very low savings rate.

That's a pity as mutual funds offer better rates than most savings and time deposits offered by commercial banks. [Disclosure: I'm a registered mutual fund agent, but the facts speak for themselves.] You can check the rates of returns of available mutual funds and find bond funds that return more than 8% and equity funds that return more than 10%.

So, seriously consider mutual funds as part of your investment portfolio. It's the primary investment vehicle for many regular folks in the U.S. and other countries. And it is where we put most of our long-term savings. ¶ 11:45 PM

How to kill the non-life insurance industry

Many have criticized the SEC for somehow partly causing the current woes of CAP and Pacific Plans after changing the ARL rules for the pre-need industry (of course, these companies are also at fault). Now, the Insurance Commission released a proposed circular that requires non-life insurance companies to triple their minimum paid-up capital from P50 million to P150 million by yearend (!!!), then double to P300 million by the end of 2006 (!!).

An industry association, aghast over the announcement, noted that some 86 of the 96 non-life insurance companies are in danger of folding up as only 10 are capitalized over P300 million. Another 8 are capitalized over P150 million. But almost half have only some P50 million in capital.

Of course, the idea is to strengthen the industry, but such a drastic measure will only weaken it. Having to triple capital by P100 million in about six months is close to impossible. Mergers and acquisitions take time. The best way is to do the transition incrementally at a gradual pace. Otherwise, it will certainly cause policyholders to panic and lose faith in the system.

So, if you're a holder of a non-life insurance policy, such as fire, car, residential, etc., you better check how your insurance company is holding up. The advantage in this case is that unlike life insurance policies and pre-need plans, you're not tied up for years.

Non-life insurance is usually renewed every year, so if you feel your insurance company might be in trouble if this circular becomes effective (it's still a proposal so don't panic), don't cancel your policy yet. But do start to shop around particularly with the better-capitalized companies so you can transfer your business before your current policy expires. ¶ 11:25 AM

Mercury Drug-Citibank Card

Here's another co-branded card: the Mercury Drug-Citibank Card. As you know, co-branded cards are another twist in the credit card business. Credit card companies partner with certain institutions, throw in some special features, and promote the card to a more niche market segment.

Equitable Card has done that with MTV. UnionBank has done that with Slimmers World and The Pan Pacific. HSBC has done that with Philippine Airlines. And, of course, Citibank has done that with Shell and Cathay Pacific.

Now, the latest co-branded product is with Mercury Drug, which makes a lot of sense. And from the looks of it, it seems like a compelling offer:

• you get a 2% rebate (as a credit on your card bill) on all Mercury Drug purchases and 0.5% for all else (with a cap of P5,000 for the latter)
  
• you get special discounts from the likes of Healthway (free annual physical exams plus generous discounts, not bad if you don't have an existing health card), Lifeline Arrows (free emergency quick response service), Medical City (10% off on in-patient bills), Fitness First (waived joining fee and 25% off on monthly dues), and Asian Eye Institute (25% off on LASIK surgery)
• you get the usual Citibank features like PayLite installment plan, One Bill, worldwide acceptance, etc.
• first year annual fee waived (for new Citibank cardholders)
  

Okay, that's the good part. Here's what you need to consider:

• if you have an existing Mercury Drug "Suki" card, which gives you a 0.5% rebate, getting the co-branded Citibank card gives you just an extra 1.5% (the 0.5% is already included in the total 2%)
• rebates make sense if you make a lot of purchases at the partner institution, in this case Mercury Drug, such that your total rebates are much more than what you'll spend on the annual fee (the first year fee is waived if you haven't had a Citibank card for the last 6 months, in which case, you're already ahead)
• there's typically no reward program for co-branded cards with rebates (the rebate program is already your reward program)
• Citibank is quite notorious for high fees (3.5% monthly interest rate) and aggressiveness (in pushing their cards, approving applications, and collecting)
• we have a bad experience with Citibank on disputed fraudulent transactions due to a stolen card (unfortunately, Citibank won't budge; it's a pity it treats long-time loyal customers in this manner)
  
• if you have an existing health card with an HMO through your employer or one that you bought for yourself, the Healthway and Medical City promos lose their relevance, though I admit the other give-aways and discounts are appealing

Now, before you think about applying, remember, if you already have 2-3 cards, resist the temptation. Cancel one if you really want this card. And make sure you do need it, i.e. the special features add real value to you.

Otherwise, if you don't spend too much at Mercury Drug, have an HMO card already, have emergency services via your car insurance or motoring club, have gym membership, want a rewards program more, want a lower interest rate, or otherwise don't see enough value, then ignore this product altogether. ¶ 11:08 PM

Chinatrust Bash Your Balance Loan

You've probably seen Chinatrust's promo on newspapers called "Bash Your Balance Loan". It's an interesting and relevant twist on the usual personal loan.

The concept is to sell this loan to employees burdened with huge credit card debt. The idea is Chinatrust will lend from P30,000 to as much as P1 million, which will be paid off in 24 months for a much lower rate. The bank will even pay half of the first month's amortization. The promo is only until June 30, 2005.

It sounds like a good idea. Except: isn't there such a thing as a balance transfer? Most credit card companies offer this. If you're burdened with huge credit card debt with Card Company A, you can transfer the balance to transfer to Card Company B, which will lend you the money to pay off the debt. In turn, you will have to pay off your transferred balance at a fixed period for a much lower rate. Sounds familiar?

The thing is, Chinatrust's add-on rate is 1.59% a month. Sure, it is lower than the regular add-on rate of 2.75% to 3.25% that credit card companies charge. But the same credit card companies have balance transfer offers of as little as 0.99% for an 12-month period, as in the case of HSBC. Some even offer 0% interest (but with a 5%-7.5% processing fee) for a 3- to 6-month period, like Equitable Card.

Okay, we're not exactly comparing apples to apples. Chinatrust's fixed period is 24 months, which means, of course, a higher rate. But HSBC's 12 months, at 0.99%, is still a lot lower. Its 18-month option takes the rate to 1.25%. If it has a 24-month option (which it doesn't), then they're probably on equal footing.

In the case of Equitable, at 24 months, the rate goes up to 1.7%, making it more expensive than Chinatrust's 1.59%. But, check out Citibank's 24-month balance transfer add-on rate (click on the Statement of Certain Credit Card Fees and Charges link), which is just 1.5%. Not bad, eh?

I'm not saying Chinatrust's promo is no good. It could be, particularly if you're carrying a huge debt and you need a much longer period (like Chinatrust's 24 months) to be able to afford the monthly amortization. Otherwise, it makes more sense to pay it off quickly and just get charged a much lower rate.

But look also at alternatives, like balance transfer promos of credit card companies that charge even lower for a 24-month period. Consider also other possible hidden charges like processing fees. Make sure as well that you're comparing similarly-defined interest rates (add-on versus effective).

Lastly, remember: shop around for rates and always ask, ask, ask! ¶ 11:57 PM

Our Responsibilities

We are to be faithful stewards of God's possessions.
A steward is a manager of someone else's possessions. God owns all that we have, and He has given us the responsibility to manage our things faithfully according to the financial principles of Scripture. "It is required in stewards that a man be found faithful " (I Corinthians 4:2 NASB).

We are to be faithful with whatever we have, even if it is little. "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 " (Luke 16:10).

If we are faithful with small things, God will trust us with greater responsibilities. We must not handle our money and possessions in ways that would displease Him because this would make us unfaithful stewards.

Read what is said to the faithful steward, "Well done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things. Come and share Your master's happiness" (Matthew 25:21). Now, compare this with what is said to the unfaithful one, "You wicked, lazy servant... take the talent [an amount of money] from him" (Matthew 25:26-28). The Lord wants us to understand the importance of being a faithful steward.

Be careful of extreme teachings on wealth and poverty. One extreme is that godliness can only occur in poverty.

Money and possessions can be used for good or evil. A number of godly people in Scripture were among the wealthiest people of their day.

In the Old Testament the Lord extended the reward of abundance to His people when they were obedient, while the threat of poverty was one of the consequences of disobedience. Deuteronomy 30:15-16 reads, "I set before you today life and prosperity, death and destruction. For I command you today° to love the Lord your God, to walk in his ways, and to keep his commands ...and the Lord your God will bless you. "

Psalm 35:27 reads, "The Lord ...delights in the prosperity of His servant. " [NASB] We may legitimately pray for prosperity when our relationship with the Lord is healthy and we have a proper perspective of possessions. "Beloved, I pray that in all respects you may prosper and be in good health, just as your soul prospers" (3 John 2 [NASB]). The Bible does not say that a godly person must live in poverty. A godly person may have material resources.

The opposite extreme is that all Christians who truly have faith will always prosper financially. This extreme is also an error.

Study the life of Joseph. He is an example of a faithful person who experienced prosperity and poverty. He was born into a prosperous family, then thrown into a pit and sold into slavery by his jealous brothers. While Joseph was a slave, his master promoted him to be head of his household. Later he made the righteous decision not to commit adultery with his master's wife. The result? He suffered years in prison for that right decision. But then, in God's timing, he was elevated to Prime Minister of Egypt.

The guideline for prosperity is found in Joshua 1:8, "Do not let this Book of the Law depart from your mouth; meditate on it day and night, so that you may be careful to do everything written in it. Then you will be prosperous and successful. "

This passage offers two requirements for prosperity. Meditate on the Scriptures and do everything they command. When you do this, you place yourself in the position to be prospered financially. There is no guarantee, however, that God will choose financial prosperity for you. He knows what is best for you and requires that you trust Him for whatever He chooses.

	Poverty	Steward	Prosperity
Possessions are:	Evil	A responsibility	A right
I work to:	Meet only basic needs	Serve Christ	Become rich
Godly people are:	Poor	Faithful	Wealth
Ungodly people are:	Wealth	Unfaithful	Poor
I give:	Because I must	Because I love God	To get
My spending is:	Fearful and joyless	Prayerful and responsible	Carefree and consumptive

[The text is from "Principles of Financial Success", a seminar presented by Crown Financial Ministries.]

¶ 5:38 PM