The Truth About Money Lies: Help for Making Wise Financial Decisions

by Russ Crosson, Kelly Talamo, Dan Cathy (Foreword)

When readers want financial advice (and who doesn’t these days?), they turn to experts such as Russ Crosson, CEO of Ron Blue & Co., the highly successful Christian-based financial planning advisory firm. In this important book, Russ teams up with gifted communicator Kelly Talamo to offer readers the truth about popular money lies that influence the spending decisions of millions of Americans. Through the use of everyday stories about men and women who wrestle with spending decisions everyone faces, the authors expose the lies involved and give truth principles based on the Bible to refute the lies. Common lies Readers will be better equipped to manage money, make informed financial decisions, and use their money wisely as they replace the common money lies they’ve been taught with the truth of the Bible.

Genres: Self Help

240 pages, Paperback

First published January 1, 2012

Reviews

[Scott Ward · Rating 4 out of 5]

While the authors provide some healthy financial advice, their truths aren’t based on all the information. For example, while they warn about being in too much debt—which is sound—and quote a Proverb about a borrower being enslaved to the lender, they ignore the many verses that assume people will have to borrow at some time. And most of the warnings—including Christ’s Sermon on the Mount—are for the lenders: you must lend even if a Sabbath year is coming when all debts are released; don’t enter the house to reclaim any collateral used to secure a loan; return a person’s cloak by nightfall so the borrower can be warm at night. And so on. The authors don’t or minimally discuss these aspects.

Likewise, while they like to quote the average credit card balance of $14,000+, they don’t discuss the data’s distribution. It’s not a normal, Gaussian, bell-curve distribution. According to the Federal Reserve, nearly half, half or over half (depending on the year) carry no balance on their cards, paying their charges each month. Decades ago, the AT&T credit card president was fired because they didn’t make enough money, missing their target: the reason is they based their projections on the average and not the median. Only 3% of Americans are delinquent being 30 days overdue. What drives the high average figures being quoted? According to the CFPB, one-third of payments made towards credit balances cover 10% or less of the balance. So there are a minority of credit card holders—and since people have 3+ credit cards, it may be the exceptions—that are carrying very large balances. Remember the 3% delinquency rate. However, the authors sound the alarm about using credit cards as if most people end up paying interest on tens of thousands of dollars. Most Americans are handling their credit cards well.

[Jason Ruggles · Rating 3 out of 5]

A decent book about money from a Christian perspective. Mostly abstract ideas and not as much on the practical side.

It has all the classic views... debt is bad, giving is good, live within your means, get on a budget.

But it also adds a few more ideas that were unique to this book. Give your kids as small an inheritance as possible (teach them instead to work and think about a "living inheritance"). Don't retire (we need to work).

[116 · Rating 5 out of 5]

A very helpful practical book!

This book is a very helpful, relatable and practical book with tools, examples and scriptural principles around stewarding money and how we think about it. I recommend it!

[Don Opeka · Rating 5 out of 5]

Good book, Quick read

[Devin · Rating 2 out of 5]

Behind every debt is a master waiting. The fact that we're able to pay on time for now doesn't make the lender go away. It only makes the master a little nicer to us (p.45)

Certain ads try to make us feel dumb for not living its way. Words such as "smart", "savings" and "getting ahead", are designed to fool us into believing money lies.
The key to financial freedom is exhibiting financial maturity: forgoing present desires for future rewards and benefits (p.47)

If you can't pay cash for a consumer item, don't buy it. Wait. Save. Pay cash. (p.49)
Generally, debt may make sense for items that have the POTENTIAL to increase in value (primarily business or real estate) (p.50)


Every lifestyle has a price tag.
The last thing believers need to do is live just like the people in the world do (p.58)

Excessive consumer debt is a good barometer that people are more attached to the world than they are to God. They refuse to depend on or wait on God to provide their needs, so credit cards become their answer. (p.59)

The commitment of tithing guides us into being good managers of our finances (p.71)

*The key to financial independence is never how much you make but how much you spend (p.84)

"There are two ways two get enough. One is o accumulate more and the other is to desire less"- G.K. Chesterton (p.86)

Comparison is the archenemy of personal contentment. Comparison is a game we can never win. Comparing ourselves to other people never changes reality. It only distorts it. (p.108-109)

Our value, our merit, our excellence has nothing to do with money, possessions, or net worth. It has everything to do with who we are in Christ and what God says about us (p.113)

The government owns a portion of our money (p.125)
Effective tax rate- the percent of every dollar earned that goes to taxes.

It's easier to get in a bind if you're in a business for yourself and don't have the taxes being withheld than if you're an employee with only W-2 wages. However, even if you're employed somewhere and your taxes are withheld, you can still get a surprise when dividends, stock sales, and other sources of income not from your employer are added in. No one can spend 100% of every he or she takes in from any sources because of taxes owed. (p.126)

Don't make crazy investments in an effort to avoid taxes (p.127), but take advantage of legitimate tax-saving investments (p.128)

We can't afford not to give (p.137). Giving is a tangible way to acknowledge the ultimate ownership and provision of our sovereign God in our lives (p.138). We can give to our local church, missionaries, send teenagers on summer mission projects, help build structures, provide food for the homeless, pay the rent of a needy family member, and more (p.140)

When we believe we can't afford to give, that is a short-term focus that will ultimately result in a loss (p.141).

We can deduct some charitable giving dollars from our tax bill, our government helps fund some of our giving. If a person is in a 35 percent tax bracket, for example, for every dollar given the government funds 35 cents. So it only costs 65 cents to give a dollar (p.144)

People gain wealth by spending less than they make over a long period of time and preserving capital with their investments (p.155)

Investment have risk; paying off debt does not (p.158)

To do nothing productive (in retirement) is not good (p.172). Make retirement part of the plan--not THE plan (p.175).

65 is an outdated age to focus on retiring. When that age was set, life expectancy was 63. Today it's around 79. (p.177)

All our increase and provision can be traced back to God's hand (p.205)
Our ability to gain wealth is primarily a function of the vocation we feel called to (p.206)

There are 5 uses of money: Living, giving, taxes, debt, and savings. (p.211)

If we view work simply as a means to generate income and meet our needs, our lives will be marked for that purpose.We will be competitive, anxious, unsatisfied, self-centered wealth seekers, always measuring what we do by the size our paychecks. On the other hand, if we accept the philosophy that work is simply an environment to live and share the Christian life, confident that God will meet our needs, we will experience freedom, focus on the needs of others, realize that wealth is a by-product not a goal, develop a good self-image, be secure in God, and experience a balanced lifestyle that includes leisure (p.221-222).

[Kelly · Rating 5 out of 5]

I think the co-author of this book sums it up best: "Surprisingly, Russ never pointed to more money as a solution to anything. He would point me to God's Word. Instead of telling me what to do, he gave me a biblical principle to think on. He said following those principles would lead to good decisions." This book challenged me to notice where I think worldly about finances and to apply biblical principles instead.

[Regina · Rating 3 out of 5]

I have read Russ Crosson before, as well as other money gurus such as Larry Burkett and Ron Blue. The new insight gained from this book is about keeping work in balance and that it is God that provides wealth and not how hard we work.

[Tuwanda Hewlett · Rating 5 out of 5]

This book is all that and more