bransonglobe.com
YOUR MONEY
FEB. 16, 2024 • 3B
Dave Says...A big mess
D
BY DAVE RAMSEY, CEO, Ramsey Solutions, and an eight-time No. 1 national best-selling author, and host of The Ramsey Show
ear Dave, I’m a single mom, and I opened my own small business last year. The business isn’t growing at all, and my mom and dad are helping me with the bills. On top of all this, I don’t receive any child support payments from my ex-husband. But my biggest concern is our home. I bought it four years ago, and when I opened my business, I did it with a
home equity loan. Do you have any advice? Tammy Dear Tammy, You need to close up your business, at least temporarily, and go find some money-making work. I’m sorry to be so blunt, but you’ve got a really big mess on your hands. Long story short, the money you make at another full-time job is likely to decide whether you can stay in
your home. If you’ve got a mortgage, home equity loan and business debts hanging over your head, the chances of this are slim. You probably need to consider the idea moving into a small, affordable apartment for a while, too. If you do this, get your debts paid off and your finances back in order—which includes living on a budget and saving— you might be able to buy a
house again in a few years. I know the idea of giving up your home and business is hurtful, but sometimes when you have a serious illness, extensive surgery is needed to fix the problem. And right now, you’ve got a very serious financial illness. I want you to understand how I’m looking at this, Tammy. The house alone is not the problem. You borrowed money to open a
business, and that was your first mistake. You also have no savings, which is another mistake, and now your business isn’t making a profit. See how all of it combined adds up into one big mess? I love your spirit, and the fact that you want to be an entrepreneur. But you’ve got to get control of your money first. If you don’t, this thing will eat you alive. —Dave
Preparing your church for a recession [Part two of two] BY RICHARD BAKER & KENNETH PRIEST [This week’s article is part 2 of two articles about preparing your organization for the next recession; I used a church in the article. BaptistPress.com originally published this article on January 30, 2024, at the link below. https://www.baptistpress. com/resource-library/bptoolbox/preparing-yourchurch-for-a-recession/ ] n part 1 of this article (February 9 Branson Globe), we defined a recession, why it’s important to prepare for one, and the steps church leaders should take to protect the church. Those four steps are: 1. Evaluate your community 2. Know your per capita giving 3. Project your budget 4. Consider your church reserves Here are the steps ex-
I
plained. Step one: Evaluate your community How hard would a recession hurt your community specifically? There is more to this than just finances; however, this article focuses only on finances. There will be people in your community and church who will see their home prices and savings drop and many others who will become unemployed. The questions to consider in evaluating your community are: How recession-proof are the industries in our community? What curriculum should you prepare to guide your congregation through this financial season? What community resources could you partner with to help those most affected? Church leaders should continuously keep the pulse of the economic impact of their community for potential adverse effects
on your church’s finances. If your community is in decline, that will impact your budget and giving for the next year. Step two: Know your per capita giving Per capita giving is often referred to as the number of giving units. Some may be offended by reducing an individual believer to a “giving unit,” but we are using it to communicate how many people give in your church, not disrespectfully. This information is used to establish per capita giving. The total of undesignated receipts is divided by the number of “family units” that contribute financially; this equals your per capita annual giving. A couple of essential questions to consider in evaluating your per capita giving is: How much of my per capita giving could be negatively impacted by the more vulnerable to
recession industries in our community? Would your church be able to meet its budgeted fixed expenses if your per capita giving was abnormally affected? Step three: Project your budget Using the above data, church leaders can forecast potential changes in giving and prepare for the coming impact on the church. One critical piece of the projection is calculating inflation into your budgeted expenses. This helps a church determine whether it should hire more staff, replace a leaving staff member, build a new building, or push deferred maintenance further in the future, etc. Items to consider when projecting your future budget: 1. Is your benevolence fund at a level to assist in a recession? 2. What future maintenance issues can be post-
poned? 3. Are there events that could cause a budget crisis that you could mitigate now? (i.e., the furnace or sound system failing)? 4. Is your giving increasing or plateauing? 5. Is there any fat in the budget to cut out? 6. How would a recession affect your members’ “planned giving?” 7. Are there new ministries that need to be delayed? Step four: Consider your church reserves How much should you have in reserves? This question significantly impacts Great Commission planning. Some in your church want to save everything, and others want to spend every dime. The reality is a church should have a strategy for its reserves. It is not unbiblical to hold funds in reserves; the very
opposite is true. Genesis 41:25 begins with the account of Joseph interpreting Pharoah’s dream to store up for the seven-year famine. This provides us with a model to have funds in reserves. We should be prepared for the future, which means we should always be ready for the lean years. We recommend that a church determine its fixed expenses (debt, salaries, utilities, insurance, etc.) and keep a minimum of one year of fixed expenses in reserves. On average, the fixed expenses seen through consulting with churches tend to be about 65% of the annual budget. Is a recession imminent? We don’t know because guessing a recession’s exact start or end date is impossible, but that is unnecessary. Knowing one is coming is what is important. One thing is certain: church leaders SEE RECESSION, PAGE 8B
Are more homeowners selling as mortgage rates come down?
BY HEATHER TANKERSLEY, REALTOR®, provides services for residential, commercial, land and lake properties in the Branson Tri-Lakes area.
I
f you’re looking to buy a home, the recent downward trend in mortgage rates is good news because it helps with affordability. But there’s another way this benefits you – it may inspire more homeowners to put their houses up for sale. The Mortgage Rate Lock-In Effect Over the past year, one factor that’s really limited the options for your move is how few homes were on the market. That’s because many homeowners chose to
delay their plans to sell once mortgage rates went up. An article from Freddie Mac explains: “The lack of housing supply was partly driven by the rate lock-in effect. . .With higher rates, the incentive for existing homeowners to list their property and move to a new house has greatly diminished, leaving them rate locked.” These homeowners decided to stay put and keep their current lower mortgage rate, rather than move and take on a higher one on their next home. Early Signs Show Those Homeowners Are Ready To Move Again According to the latest data from Realtor.com, there were more homeowners putting their houses up for sale, known in the industry as new listings, in December 2023 compared to December 2022 (see graph above). Here’s why this is so significant. Typically, activity
in the housing market cools down in the later months of the year as some sellers choose to delay their moves until January rolls around. This is the first time since 2020 that we’ve seen an uptick in new listings this time of year. This could be a signal that the rate lock-in effect is easing a bit in response to lower rates. What This Means for You While there isn’t going to suddenly be an influx of options for your home search, it does mean more sellers
may be deciding to list. According to a recent article from the Joint Center for Housing Studies (JCHS):
“A reduction in interest rates could alleviate the lock-in effect and help lift homeowner mobility. Indeed, interest rates have recently declined, falling by a full percentage point from October to November 2023 . . . Further decreases would reduce the barrier to moving and give homeowners looking to sell a newfound sense of urgency . . .” And that means you may see more homes come onto the market to give you more fresh options to choose from. Bottom Line
As mortgage rates come down, more sellers may re-enter the market – that gives you an opportunity to find the home you’re looking for. Let’s connect so you’ve got a local expert on your side who’ll help you stay on top of the latest listings in our area. It’s Your Move! I believe every family should feel confident when buying and selling a home. Heather Tankersley REALTOR®, ABR® Keller Williams TriLakes D: 417.332.5130 O:417.336.4999
HEATHER TANKERSLEY REALTOR
®
MOVING TO BRANSON? LET'S CHAT!
417-332-5130
®
DOWNLOAD MY APP
O: 4173364999
Each office is independently owned and operated
