Managing time with a home business

Working at home in a home business provides flexibility and freedom, but discipline is necessary to complete the work required.  Proverbs 6:10-11 notes “A little extra sleep, a little more slumber, a little folding of the hands to rest – then poverty will pounce on you like a bandit; scarcity will attack you like an armed robber.”

The following ten tips will help with managing a home business.

1. Start each day by dedicating it to the Lord. Our time each day is given to us by God: “There is an appointed time for everything. And there is a time for every event under heaven” (Ecclesiastes 3:1). Before the workday begins, dedicate it to the Lord. Ask Him for guidance and for help in using the time He has given, as He wants and as He sees fit.
2. Schedule time for business paperwork and accounting. Set aside a certain time each day or week (depending on the size of the home-based business) to do paperwork. This would include filing receipts, invoicing clients, balancing accounts, and paying bills.
3. Plan time—don’t fragment it. Divide the day into similar things by category. Group all phone calls (mornings are best for phone calls), projects, and errands to be done at the same time. Finish one category before shifting to another.
4. Be productive—don’t procrastinate. Procrastination is probably one of the primary reasons why goals are not accomplished. By determining when is the most productive time, you can limit procrastination. Strive to work during peak performance periods if it doesn’t conflict with family time or the family routine. Home-based businesses must conform to the family routine, not the reverse.
5. Establish a routine that is acceptable. Home-based businesses do not have to be limited to a 9-to-5 routine. However some type of routine should be established—one that can maximize production without sacrificing family. You might;
   1. commit a certain number of hours per day to the business, or
   2. certain full days to the business and take full days off—perhaps working with the business every other day.
6. Know when to say No! If you commit to friends, projects, or jobs, you must honour those commitments. Before any commitment is made, be sure to determine how that commitment will affect your family, business, deadlines, or other commitments. If accepting the obligation will negatively affect any of these, the answer to the request should be, “No!” Or at the very least, “Not at this time.”
7. Organize commitments. List all things that need to be accomplished or commitments that have been made. Then list the time that it will take to accomplish or finish each task. Divide the steps necessary to meet each goal or accomplish each task into daily assignments. Maintain these assignments until the project is complete.
8. Schedule extra time. When making schedules, make sure that there is enough flextime. Pad all appointments and activities with a few extra minutes in anticipation of unforeseen delays or unexpected circumstances.
9. Evaluate the importance of all meetings and appointments. Many meetings and appointments waste time that can be used for more productive things. Some business can be conducted quickly by phone, online meeting, or e-mail, rather than scheduling a meeting to do it. Don’t hesitate to set a length to meetings and end meetings that become non-productive.
10. Have family co-operation. Business schedules and routines should not interfere with quality family time, but the family should understand and support an agreed upon business and work schedule. Family time is a priority, but the family needs to understand the value of being a good steward and maintaining good work ethics.

Conclusion

When God provides an opportunity for people to operate a home-based business, they need to organize that business and operate it with the highest level of work ethics if they expect it to be productive.

If God controls the business and if good time management is used there’s more likelihood the home-based business will be successful.

Useful links:

Should I start a business?

Sample Business Plan

Business by the Book

Business by the Book workshop

Business by the Book bible study

Peter Crawford          crown@crown.smm.acme.org.nz

Annual gambling losses pass $2.6 billion

The Department of Internal Affairs latest gambling statistics show a 9% increase in gambling expenditure between 2019 and 2021. Gambling expenditure was nearly $2.7 billion in the year ended June 2021 (gambling expenditure is the amount lost by gamblers – the difference between the amount gambled and the amount returned as prizes). Total gambling turnover (excluding casinos) was estimated to be $15.1 billion. The growth in gambling expenditure was limited by the COVID-19 border restrictions, which significantly reduced international tourist numbers.

The strongest growth in total turnover and expenditure was on New Zealand Lotteries Commission products. Expenditure on these increased by 31% in the two years to June 2021

To put the gambling expenditure of $2,625 million into context, Statistics New Zealand latest household expenditure survey for the year to June 2019 shows that New Zealand households were estimated to have spent:

• $3,362 million on apparel and footwear,
• $4,092 million on domestic fuel and power, and
• $3.836 million on health services.

Why do people gamble?

Many people gamble because they feel that they have needs that cannot be met through earned income. Gambling to them is their “opportunity” to acquire material wealth and comforts. Another group gambles just for the fun of it; they call themselves social gamblers. The last group is compulsive gamblers. To them gambling is a disease that wrecks their finances, families, and careers.

Why is gambling a problem?

Gambling surveys that people on low incomes spend a higher proportion of their income on gambling. That’s often motivated by a desire to experience a level of wealth that’s not possible through work. For every person who gains money from gambling there is a far greater number who have lost. All of the expenditure numbers quoted in this article are based on the average amount of money that is lost by people in gambling, not the amount they have invested in the hope of winning.

Expenditure of this size is having an impact on families, with the biggest impact on those that can least afford the loss of income. Problem gambling is a concern, but even low scale gamblers are a concern. That’s because money is being diverted away from current family needs for a distant hope of future wealth.

Gambling is in direct opposition to the scriptural principles of diligent work and faithful stewardship. No productive work is required in gambling; thus, a person’s character is not properly developed. The odds of winning are absurdly low, and gamblers waste the possessions that the Lord has entrusted to them.

Conclusion

The Bible does not specifically prohibit gambling. However, for many the motivation for gambling is an attempt to get rich quick. This is a violation of Scripture. In our opinion, a godly person should never participate in gambling or lotteries — even for entertainment. We should not expose ourselves or others around us to the risk of becoming compulsive gamblers; nor should we support an industry that enslaves so many.

There is more information of the DIA website

Peter Crawford          crown@crown.smm.acme.org.nz

The good and bad of oil price rises

Oil prices have significantly increased recently, 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 increases in oil prices can create economic instability.  That’s occurred recently, with central banks having to rapidly increase interest rates to try to slow the rate of inflation.  Less than two years ago interest rates were being reduced to record low levels.

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 2018 data shows 73% of people drove to work or were passengers in a car, truck or van.  There were 12% who worked at home and just 7% walking or cycling and 6% using public transport.  There were 50% of children and adults who drove or were driven to education.  The share who walked or cycled was higher at 24% and the public transport share was 19%.

But there are alternatives for travel that are good for our wallet and often for our health.  Estimates for owning a car show the fixed costs are usually higher than the variable costs.

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.

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 can 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 cost is the interest you might have earnt on those savings.

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 new the car is, how large it is, how far you drive it in one year and how you paid for it.

Broad estimates I have done suggest an annual cost of $6,700 for ownership of a 10-year old petrol car.  The cost will be smaller if it’s a small car or older than 10 years.

The estimates 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 current cost will be higher.

Options for reducing the number of cars you own include:

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

Peter Crawford

Help me get our spending under control

If your spouse is spending too much money, there are some key steps you can take.

Some of the obvious ways to reduce spending include eliminating the big expenses.  This might be a car payment or rental/living costs in excess of 40% of your net spendable income. Look at both of those expenses closely, and determine if you need to make any changes. If not, there are some not-so-obvious ways you can save money each month that really add up over time. Cutting what seems like a necessity may seem impossible, but over time, the sacrifice will prove rewarding. Here are a few examples for you to consider.

1. Do you really need that streaming service?
2. Do you really need Audible or Spotify? Or can you survive with ads during the free version of Spotify?
3. How much do you send on eating out?
4. Can you make your lunch at home and stop buying it each day?
5. Can you survive with just one car?

Free audiobooks are available via your local library.  They have various ways to download eBooks and eAudiobooks onto your computer or device with a library card. Spotify and other small monthly fees that seem insignificant can really add up.

There’s More

Look at your spending with a critical eye. What could you realistically eliminate? What are your real needs? What do you need to reprioritize? Small daily purchases can add up quickly.

Analyse what is spent on subscription services, fast food, coffee, bottled water, shoes, clothes, gym membership and gear, house plants, manicures, pedicures, tattoos, haircuts and colour, lottery tickets, toys for children, etc.

Spending Challenge

Ask your spouse to join you in tracking all of your spending for the next 30 days. When Ann and I did this years ago, we found that recording each dollar spent made us more aware of our actions. We realized that we had some costly habits. Write down your expenses. Don’t leave anything off your list so that you know where your money is really going.

After 30 days, come together and share what you learn. It may only take a few days before a heightened awareness sets in. Prayerfully discuss what you could sacrifice for six months or a year. I suggest you gently educate your spouse on the long-term benefits. Can you agree to get the help of a mentor or come under the accountability of trusted friends? How about planning a reward when reaching your goal? You can likely cut back on your spending 25% by just changing some of your habits.

Reducing spending builds the habit of saving.  With the help of automatic payments or direct debits, people learn to live without. The possibilities once you reduce your spending can include:

• Building an emergency fund
• Paying off debt
• Saving for retirement
• Giving more generously
• Having funds for a move, a business, education, holidays, births, deaths, etc.

We enter marriage with a philosophy of money. Most often, we marry an opposite. The goal is uniting around God’s principles regarding our finances. Pray about how to lovingly communicate with your spouse. Treat him/her with respect and love so you can make progress. My desire is to see God’s people free and marriages united, strong, and thriving. We must recognize the errors in what the world has taught us about finances and have our minds renewed by God’s truth.

Chuck Bentley

Why understanding your money philosophy could save your marriage

Ask married people about their financial problems, and you’ll likely hear a list of issues:

“I’m not sure I’ll ever be debt-free”

“I’m sick of living from one week to the next”

“I will never have enough savings to buy a house”

“If my husband (or wife) would stop spending money, we wouldn’t be so stressed all the time”

Common financial issues are;

• struggling to get out of overdraft or pay off credit card debt,
• making it to the end of the month, or
• unable to retire due to a mortgage that has not been paid off.

These concerns stretch across religious, ethnic, and gender differences.

For many, mixing money and marriage is like oil and water…they just don’t go together. Finances are a leading cause for divorce, the delay of marriage, and not getting married at all. Try to find a couple that hasn’t ever disagreed about money.

My marriage was no different. My wife and I spent 21 years of our marriage in disagreement about money. We had arguments, ongoing stress, and made mistakes because I didn’t agree with her and she didn’t agree with me. I was the spender, she was the saver. We loved each other, but were far from being unified when it came to our finances.

So why is it that when it comes to money in marriage, we have such a hard time getting on the same page?

Well, in a word: Philosophy.

If you had told me during those first 21 years of my marriage that my wife and I need to talk about “philosophy” to get on the same page about our money, I would have rolled my eyes and shrugged it off. “Philosophy” was just something stuffy old professors cared about and it didn’t apply to me, my marriage, or my money.

The turning point in our marriage came when my wife lovingly convinced me to join a Crown Financial Ministries Bible study. Talking about my marriage and finances in a group of other people sounded like just about the worst thing I could think of, but I went. And things started to change. One day, my wife gently asked me, “Do you agree with God’s teaching on money?” I said, “Yes. I agree with God.” She then said, “Good! If you agree with God, then I can agree with you!”

We quit competing about our preferences, and started unifying under God’s plan.

See, whether or not we know it, each of us have a philosophy about money. It’s not necessarily some lofty, theological mind-set that sounds like it came out of a university. It’s a compilation of our thoughts, ideas, plans, dreams, concepts, beliefs, and principles that together dictate our actions.

God designed us to act upon what we believe. So if we believe the wrong things about money, we are bound to behave wrongly as well. But, if we believe the right things about God, His plan, and His purpose for our marriage and finances, it will change everything.

Stated another way, the problem is not how much money you make, what’s in your savings account, or the amount of debt you have. Those are your behaviours, which are a result of your beliefs. The problem is the financial lies you believe. Disunity with your spouse occurs because you’re treating the wrong thing. You’re trying to put a band aid on a broken leg, and it’s never going to fix the real problem.

Healing happens when you align your philosophy with one another and Scripture. You and your spouse start speaking the same language. You start prioritising the same things. It’s no longer an attitude of “I’m right, and she’s wrong”. It’s “This is what the Bible says, and we are going to agree to live our lives according to this truth.”

To experience lasting change, we must embrace the truth of a new belief, then to act upon it to change our behaviours.

As it says in Proverbs, “Above all else, guard your heart, for everything you do flows from it”.

Chuck Bentley

Should I buy an electric car?

The government is promoting the purchase of electric cars, providing cash rebates for purchase of new or second-hand imported cars. A rebate of up to $8,625 is available for new electric cars costing less than $80,000. Up to $3,450 is available for used electric cars which have been registered in New Zealand for the first time. In addition to the cash rebates, electric cars aren’t currently required to pay road user charges. Road user charges for petrol vehicles are paid for through the tax on petrol.

The latest analysis from Gen Less suggests the total cost of owning an electric car is significantly less than for petrol cars over a five year period.

The five year cost for an electric vehicle was estimated to be $36,772 ($7,354 per year). That compares with $54,473 ($10,895 per year) for a petrol car.

However, you have to look behind the numbers

There are some key assumptions that affect the analysis of which option is better. The Gen Less estimates are based on:

Assumption 1: you purchase a new car

Most new cars are purchased by businesses or the self-employed because they can reduce their tax due to the high depreciation cost for new vehicles. Depreciation is an estimate for how much your vehicle declines in value on an annual basis. However, the tax reduction is only a portion of the fall in value of the vehicle.

The Gen Less analysis suggests the average new electric car will lose half of its value in the first five years. After five years the brand new car you purchased for 50,000 will be worth just $25,000. That’s a significant annual cost for owning a new car, costing you around $96 a week. That doesn’t include any of the costs involved with using your car.

The Gen Less analysis suggested the loss was even higher for petrol cars.  They were worth only 43% of their original price after five years. That means a new car purchased for $50,000 would be worth only $21,500, losing $28,500 over five years.

There are few second-hand electric cars on the market, so that may explain some of the difference in depreciation rates between electric and petrol cars.

Assumption 2: you can purchase your car with cash

This is a key assumption because debt servicing significantly increases the cost of car ownership. That applies whether you finance it through the mortgage on your house or through car finance. Financing a $50,000 car purchase through a top up on your mortgage will cost you an additional $13,560 in interest. That’s assuming you pay it off over ten years at an interest rate of 5%, with weekly payments of $122.23 a week.

Mortgage interest rates are currently increasing and may reach 6% during the next 12 months. That would add a further $3,000 to the total interest cost over 10 years.

There is still a cost to you if you use cash. If you purchase a cheaper second-hand car you will continue to earn interest on the money you might have spent on a new car.

Assumption 3: you travel 17,970 km per year

This is higher than the average of 11,000 km a year for the average passenger car in New Zealand. The less the distance you drive in a year the less the estimated savings from owning an electric car.

Assumption 4: the cost of electricity is based on commercial power prices

Because of the high proportion of new car purchases by businesses the estimates are based on a commercial electricity cost of 17c/kwh (GST excl.) Ministry of Business, Innovation and Employment estimates show a household electricity cost of 27.64 cents in the March 2022 quarter (before discounts).

Items not estimated were:

1. The cost of car insurance, which is higher when you have an expensive car.
2. The cost of battery replacement. The average new car in New Zealand is retired after 21 years, clocking up 232,000 km in that time. You should assume the battery will have to be replaced at least once. Before buying a new or second-hand electric car it is worthwhile checking what a replacement battery will cost. It is suggested that battery costs will decline as the volume of electric car production increases. Despite this, battery replacement is still likely to be a significant expense.
3. The cost of installing an in-home charger, which is a one-off cost, but a useful factor to think about now when buying a house.

Electric vehicles are currently exempt from road user charges, but the exemption is due to end by 31 March 2024. It is estimated the exemption currently saves electric vehicle owners around $600 a year.

There is a limited supply of second-hand electric cars in New Zealand, but supply is increasing. In the year to June 2022 there were 9,587 new fully electric cars imported into New Zealand and 20,482 hybrid electric cars. Over the same time period 3,767 second hand fully electric cars were imported and 29,724 hybrid cars.

It is important to research and understand the costs of time and money before making any purchase. “For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it?” (Luke 14:28 ESV)

Conclusions

I recommend that you buy a used car, paying cash for one that will decline in value slowly. The world will sell you lots of reasons to buy a new car, but remember a car is simply a way to get from one place to another. Driving an older, reliable car is the best option financially.

Many households have more than one car and it is worthwhile looking at alternatives now available for transport to reduce the number of cars you own. The savings over a 40 year working life can be substantial.

Peter Crawford

Should we borrow for our daughter’s wedding?

Weddings can be very expensive, with costs amounting to more than $30,000 common in New Zealand.  That can be a significant financial burden for parents and some are tempted to borrow against their house to pay for the big day.  If that is what you are considering, there are some big questions to think about.

Do your homework to avoid the possible pain and stress of two mortgage payments. Analyse your income and employment situation, and put your pencil to the numbers to determine how much wedding you can afford without debt. Talk this over with your daughter and her fiance.

Does the wedding need to cost $30,000?

When our daughter graduated from university, her education fund was changed to the house deposit/wedding fund.  When she got engaged that was a helpful trade-off for her and her fiance to think about.  There was pressure to have a big wedding, but they both wanted to buy a house in the future.  That got them thinking about how they could have a special wedding without making it more difficult to buy a house.

Some of the areas you can look at to save money are:

1. Do your research on options for purchasing clothing for the wedding party. What can you borrow?  Is a good second hand dress or suit available online?  A friend of our daughter’s had recently purchased a cheap new dress online and was very happy with it.  The cost was just $80 compared with the $3,000 someone we knew paid for a similar dress made locally.
2. Ask friends to help you crowdsource flowers or consider whether you need flowers? Are there alternatives to flowers?
3. Photographs and video costs for the wedding can be very expensive. Are friends available to help out?
4. Venues can be very expensive to hire and may require you to use their catering for the reception. They are usually more attractive settings than your own church facilities, but how important is that.  What is the long-term cost of using an expensive venue?
5. Are friends willing to volunteer to do the catering or help the caterer to minimise your costs.
6. Alcohol can be a significant cost. If you choose to have it, you have to decide a limit to how much you are willing to pay.  When do the guests at the wedding need to pay if they want to consume more?
7. Are there other items, such as the wedding cake and bridal vehicles, which family and friends can help with as a practical wedding gift?

When Jesus told a crowd (Luke 14:25-33) to consider the cost of discipleship.  He gave an illustration: “For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it?” This diligence and analysis is necessary for every big decision we face in life.

Frugal weddings are nothing to be ashamed of.  Years ago, a survey suggested that weddings featuring low costs but a high number of guests produced longer lasting marriages than high cost weddings with fewer guests.  That might reflect the level of wider friends and family support before and after the wedding, since many people like to know how they can help out.

Be encouraged and patient. I am not sure how long you have before the big day, but disciplined spending and saving now can help you avoid borrowing. My hope is that this information will help you show the maximum amount of love and support to your daughter and future son-in-law, with the minimal amount of financial stress.

Peter Crawford

Does God require fathers to be the breadwinners?

This question raises a common confusion: the distinction between leader and provider, and how God instructs men on both. The image that we are given in scripture for God the Father is of the highest and best leader of all.  That provides us with a template for understanding what is expected of men and what is not.

In the Bible, God lays out a chain of leadership, which does not subjugate, but rather organises how people work together. At the foundation of the structure is sacrificial love by the leader, who is held to the highest standard.

When it comes to organizing households, 1 Corinthians 11:3 puts it like this, “But there is one thing I want you to know: The head of every man is Christ, the head of woman is man, and the head of Christ is God.” In this outline, we see God detailing who is accountable for whom in relationship. God, out of love for the world, sent His Son to die for us. He made a plan to care for all of us. He asks the most of Himself. The husband is told to lay his life down for his wife and family as well, following God’s example. Accountability does not equal tyranny, but rather describes a sacrificial relationship.

Consider that wives are told to love and respect their husbands, while husbands are ordered to be like Christ. “For husbands, this means to love your wives, just as Christ loved the church. He gave up his life for her,” notes Ephesians 5:25. Husbands and fathers are called to sacrifice their own desires for the good of their family. This requirement ranks far above money. It involves time, planning, preparation and self-discipline for the goals and good of our loved ones. But does that responsibility also include the requirement to be the main income earner?

The short answer is no. The Bible does not indicate that a good husband and father brings home all or the highest share of the income, but he is required to work to the best of his abilities. A husband is required by God to care for the good of all in the family. 1 Timothy 5:8 says, “But those who won’t care for their relatives, especially those in their own household, have denied the true faith. Such people are worse than unbelievers.”

This verse indicates that a husband and father is expected to provide for his family, to know their needs and to plan how to care for them.

Some women do work — even in the Bible. In Proverbs 31 for example, we read about the industrious woman, who cares for her household and contributes to the income through her businesses. God chose Deborah to rule as a judge over Israel in the Old Testament.  We know of married couples like Aquila and Priscilla who worked together as tentmakers. Glimpses of couples working together are woven throughout the scriptures without any condemnation of the family where the wife may have earned more.

But God does require something from those in leadership and holds men accountable for their management of their homes and families. A husband and wife together may decide that both need to work, and may organise their resources to achieve goals for their children and loved ones. It is the husband and father who will be held accountable for keeping the family on track.

Options to think about

Sometimes, when a couple has small children, it may make sense for the person with the lowest income to take on the responsibility of caring for the children while the other works full-time. Some men do well in the role of stay-at-home parent, while others struggle.  It depends on what works best for you as a couple. Working for Families tax credits and the Accommodation Supplement for families who are renting or have a mortgage, mean they might be better off financially on one income, because they don’t need to pay for child care.

Some men have been able to go into unpaid ministry work because their wife is able to financially support them both and their children. This doesn’t mean that the men have given up on their responsibilities to provide for the family, but rather that they have come to an agreement with their wives on where God wants them both to be working.

A great first step to setting priorities for your family is make sure that what you believe about God’s principles for finances aligns with how you actually behave with your finances. The MoneyLife Indicator assessment on www.crown.org will help you identify areas of strength and weakness and provides an Action Plan for making changes. So, make it fun and plan a date night with your spouse to discuss your individual results, the impact on your family and what steps you want to take together!