Stewardship tips for 2009

2008 was a disaster year for investors. The economy is likely to be very weak in 2009. It will probably see improvement for investors in most asset classes. If you go back and look at all the years that the Dow or S&P 500 lost over 20% in a year, you will notice a strong up trend in the following year. The exception to that is the Great Depression from 1929-1932.

The downward spiraling economy has created lots of opportunities to improve our use of financial resources. Here are some ideas that are on the top of my mind:

1. Refinance your mortgage.

If you have a mortgage on your home and you have equity, now is a good time to refinance your home. I was recently quoted 4.375% for a 15-year mortgage. There is some speculation that rates may get as low as 3% before this recession bottoms out. But that is all speculation. I would feel comfortable with any rate in the low 4% range.

2. Renegotiate with service providers

Some of the services that I use for my home were made at times when the economy was healthier. If you are looking at the budget and can't justify the current price you are paying for some services that add value/save time, call up the provider and see if they will accept a lower price. I was able to knock a couple of hundred dollars a month off my budget by doing this at the first of the year.

3. Re-examine your energy costs

The freefall in energy prices is good for consumers. Rates on electric service have dropped from $.15 per kWh to around $.11. It is a good time to shop and make sure you are getting the right deal. This could save you over $1,000 in the course of a year.

4. Plan your clothing and gift expenses well

Retailers are offering huge discounts and are likely to be doing so all of 2009. Shopping online and shopping smart can cut these budgets by 1/3 to 1/2 in the New Year.

All of these things need to be balanced with a compassion of how it affects others. I don't think being frugal at the expense or detriment to others is God-honoring. But at the same time, we should balance this concern for others with a healthy dose of reality that the economy is much different than it was a year ago.

We should always strive to be a good manager of the resources God has entrusted to us and eliminate as much waste as possible.

Ashley Hodge