Successful Money Management for Christians Lesson Eight
Successful Money Management for Christians
Lesson
Eight
“The
Joy Of Being Debt Free”
“Let
your conduct be without covetousness; be content with such things as you
have. For He Himself has said, ‘I will never leave you nor forsake
you.’”
(Hebrews 13:5)
Being
content with such things as we have does not mean we should be lazy,
indolent, without ambition or hard work! But a sense of contentment and
assurance that God can give to us will make us far better money managers
than we would have been otherwise. Discontent, greed, selfishness,
covetousness all lead to our downfall financially, and most of all,
spiritually. And….the way to financial security and peace of mind lies
in making a commitment to avoid debt…..and even greater, to be free of
debt! However, in making such a commitment, it is necessary to be content
in having less of this world’s goods than those about me. Most people
around us are more concerned about acquiring material possessions,
creature comforts, and status symbols than they are about being right with
God. Christians are expected to exercise control over our lifestyles and
our spending. Self-control is a fruit of the Spirit of God that all
Christians are to possess (Galatians
GETTING
OUT OF DEBT
One
of the great joys of life is the feeling of having myself
under control, a sense of self-discipline, and financially to be debt
free. Getting out of debt for some will be fairly simple and quick, but
for others, it can be a real trial and testing of one’s determination.
But the feeling of joy at the end will be well worth the price that has to
be paid to be debt free. The following are common-sense suggestions that
will definitely help anyone to rid their lives once and for all of those
unwanted, unwise debts that destroy our peace of mind and financial
security.
1.
Seek
for the strength and motivation that comes from God’s Word. Discipline
and self-control are Christian virtues that all of us need. God’s Spirit
can bring it into our lives if we will sit at His feet and learn His Words
of Wisdom. (Philippians 4:13). I must face my problem head on…..”I am
responsible.” I must want to get control of my finances.
2.
A
detailed Budget is an absolute must! I
must plan to get control of my finances with an
accurate budget. A budget shows me my full income and
expenses and also provides a basis for planning how to better manage them.
It will help give me the guidelines to trim back my spending. It will help
me to know where I
am in
my financial journey.
3.
I
must make a commitment to get out of debt.
Getting out of debt will take work on the part of possibly the whole
family. In fact, it may be necessary to involve the whole family in the
process in order to reach the desired goal.
4.
Stop
using Credit cards!
Some even suggests cutting them up so they cannot be used. It may not be
possible at first to do either, but this obviously should be a first
priority in planning to become debt free. Stop making additional debts.
Learn to say “NO” to new purchases that are definitely not needed.
Also, operate on a “Cash Basis” from now on!
5.
Sell,
sell, sell! Have
garage sales, yard sales, etc., of those items that are not used or
needed. Use the money to pay off debts sooner.
6.
If
heavily in debt, take drastic measures!
If you can’t get out of debt for a long time under your present spending
patterns, then, drastic action is called for! Cut your spending to the
“bone.” Lower your standard of living to emergency levels. The greater
the sacrifice now, the sooner you can be debt free. Evaluate to see if you
need your present car and can get by for a time with a cheaper car. Move
closer to work. Cut down on the amount of food you eat, especially the
frills. Take vacations closer to home with less expense. Evaluate all
those areas where money is being spent and find a way to cut a little
everywhere possible. These drastic means are harsh possibly, but when you
see your debt melting away quickly, it will be well worth the price. For
example: $ 2.74 per day on non-productive purchases results in $ 1000 a
year loss in long term saving. $ 1000 a year at 12.5% in 40 years can
become close to a million dollars. So, you can see that even small amounts
saved can pay off. Dollars spent today takes multiple dollars out for the
future!
7.
Learn
to take care of what you do have!
Clean it, oil it, repair it, sew it, fix it up so it will last longer.
Learn to be content with what you do have so you can get out or stay out
of debt.
8.
Change
your habits!
Eliminate all bad habits: cigarettes, alcohol, junk foods, things that are
bad for one’s health. Keep healthy---and save money! Change your way of
buying things that will help to save money.
Avoid fashion fads. Cut out pre-packaged or pre-cooked foods. Etc.
9.
Consolidate
your debts.
Any time you can cut the interest rates on your debts, it would pay to
re-finance or consolidate your bills. However, you must not make new
debts. Begin paying off smaller debts first and/or those with higher
interest. Set a time to have all debts paid off. As debts are eliminated,
apply money to pay off other debts.
10.
Celebrate
when you arrive at that great event!
Have a “Debt Free Party!” And enjoy the peace of mind, freedom from
worry, ability to save money, ability to give more, and the successful
distinction between “wants” and “needs.”
11.
And
stay out of debt! Save,
Invest, Give, Enjoy. People with savings are usually not in financial
trouble! Focus on the positive….with God’s help, all is possible!
DEBT
REDUCTION
A.
HOW
CAN I REDUCE LIVING EXPENSES:
1)
Housing
$
2)
Food
$
3)
Clothing
$
4)
Transportation
$
5)
Medical
$
6)
Insurance
$
7)
Children
$
8)
Entertainment
$
9)
Gifts
$
10)
Miscellaneous
$
Total………………………………………$
B.
HOW
CAN I REDUCE MINOR DEBTS QUICKLY?
1)
_________________________
$
2)
_________________________
$
3)
_________________________
$
Total………………………………………$
C.
HOW
CAN I REDUCE MY TAXES?
1)
_________________________
$
2)
_________________________
$
3)
_________________________
$
Total………………………………………$
D.
HOW
CAN I RESTRUCTURE MY INVESTMENTS?
1)
_________________________
$
2)
_________________________
$
3)
_________________________
$
Total………………………………………$
E.
HOW
CAN I INCREASE MY INCOME?
1)
_________________________
$
2)
_________________________
$
3)
_________________________
$
4)
_________________________
$
Total………………………………………$
GRAND
TOTAL OF CASH FLOW PROJECTED FROM SAVINGS………$
INCREASE
IN MY GIVING FROM SAVINGS ABOVE………$
TOTAL MARGIN INCREASE FOR DEBTS OR INVESTMENTS………
Homework
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