Tag: debt

Enslaved to Debt

Kevin6 Comments

This is part 8 of a 10 part series I call Financial Freedom. The previous post, Count the Cost, can be found here: https://thingsmyparentsnevertaughtme.family.blog/2019/12/10/count-the-cost/

My wife and I try to live within our means. In general we have stuck to this commitment. However, for many years large purchases seemed impossible. We did incur a large amount of debt in our cars and home. We were not alone. According to Money.com in 2018 the average debt for a 51 year old like me in the U.S.A. was $134000. It seems like the banks have a great deal of control over our finances. Proverbs 22:7 “The rich rule over the poor and the borrower becomes the lender’s slave.” The average credit card debt in March 2019 according to the Federal Reserve was $5700! This means a massive amount of money is being transferred from your bank account to someone else! This did not sit right with me. My goal was to do something about this.

I look at it like the reverse of compound interest. When you buy something with credit then you end up paying much more for it. Let’s say you have $5000 of credit card debt and assume you charge nothing else to that card. You make payments of $100 a month at 18% interest. When you have paid off that credit card you will have added an extra $4311.25 in interest over 94 months. Let that sink in. A purchase of $5000 cost you almost double. Compare that to saving the $100 over 50 months and paying cash. A little patience and self control will make you $4311.25 richer. This same concept can be applied to larger items like cars and houses. This sounds impossible, right? However, the Bible calls us to it. Romans 13:8 “Owe nothing to anyone…” This idea is repeated throughout the Bible. If God said to do it then shouldn’t we give it a try?

Most people think it impossible but can you really afford otherwise? Here is what can be done. Lower expectations. Do I really need that sports car and a massive house? The bank wants to maximize it’s gains and will encourage you to buy as much as you are able. Paying cash will make you consider cheaper alternatives as well as paying less for that item over the long term. Before considering large purchases get other debt paid off. Pay down credit card and student loan as much as possible. It is a better investment to get out of debt first. Apply windfalls and raises directly to this debt. Then save! Start paying for cars and houses cash. If you already owe start double or triple paying as you can. Keep reminding yourself that debt equals slavery. Give it a try. God will not disappoint.

1. Make a plan to become debt free. If you are out of debt stay that way. If you are in debt, figure out how to get out of it.

2. Pray that God shows you how to stay out of debt. You may need forgiveness for acting outside of God’s will.

3. Be thankful for God’s direction and pray to honor God in this commandment.

We are currently working to become debt free. We now pay for cars cash and make double payments on our house. How cool is it to never have a car payment! It’s an amazing thing. I am so thankful for the freedom God gives my wife and I in that. I can’t wait to have our house payments disappear! It’s still a long way off but could you imagine what your life would be like to no longer have that massive debt? I can imagine how great it will feel to have no house payment and a peace of mind knowing we always have a home. No more stressful days wondering if we will make rent even when facing job loss! Doing the things God calls for is super cool!

I pray that God will help you be resolved in getting out of debt and staying that way so you may know a peace and fruitfulness in your finances as we are commanded to do in His word.

Count the Cost

Kevin1 Comment

This is the 7th in a series I call Financial Freedom. The previous post was entitled Prepare for the Future which can be found here: https://thingsmyparentsnevertaughtme.family.blog/2019/11/26/prepare-for-the-future/

The one thing my wife and I learned to do from our parents was creating a budget. We even took a class at church on how to make a budget together. We had fun with it. However, the first year of marriage was lean. If we had $2 left in a week for the dollar movie theater, it was exciting. This budget thing was extremely useful to know exactly how much we could spend. At the time we were acting according to God’s plan.

Christians are called to budget. Proverbs 21:5 “The plans of the diligent lead surely to advantage, but everyone who is hasty comes surely to poverty.” Making a budget and following it were very helpful in keeping us out of debt. Besides a car payment we had no debt. Our credit cards were paid off each month. Jesus talks about counting the cost of a project. Luke 14:28 “For which one of you, when he wants to build a tower, does not first sit down and calculate the cost to see if he has enough to complete it?” To run a country, company or household you must know the cost of things and make a plan. 1 Corinthians 4:1-2 “Let a man regard us in this manner, as servants of Christ and stewards of the mysteries of God. In this case, moreover, it is required of stewards that one be found trustworthy.” Our positive example in stewardship of resources is representative to the world as faith in God.

To make a budget, simply make a list of everything you spend money on … tithe, housing, allowance, car payment, gas, etc. There are many resources that can help you determine where money is spent. Everyone’s list is different. Some will be estimates. It does not need to be perfection. Just a general idea. I like to think of it by month but whatever is easiest for you. Compare to your take home pay. If the numbers don’t add up then make adjustments as necessary. Easy right? Maybe not for some. It may require difficult decisions.

1. If you do not have one already, create a budget making sure that your tithe is top of the list.

2. Prayfully consider where adjustments can be made.

3. Be thankful for the provisions God has provided and doubly so if anything is leftover like $2.

Our parents did well to show us how a budget was made. It kept us out of financial hardship. I prepare a budget every year or when we have some life change. I share the budget with my wife and children. Yes, I think children should be aware and taught financial planning. Making a budget brings me peace of mind. The budget has transformed over the years with a variety of life decisions. At first, it was a way to figure out how to spend every last penny. Now, it is a useful tool in reaching our financial goals and making us more secure. Knowing the cost has allowed us to better serve God in our tithing and giving. How cool it is to obey God and bare fruit.

My prayer for you is that you will become a good steward of your finances and “count the cost” by creating a budget.

You Need a Vacation

Kevin2 Comments
Yellowstone National Park

This is number 5 in a 10 part series I call Financial Freedom. The previous was entitled Give Joyfully.

That’s right! I just told you to take a vacation! How does that play into finances? Let me explain. For many people this is a no brainer. For others like me vacations are stressful. So much goes into a vacation like money, time, preparation, travel while trying to cram as much possible into a very stress filled week. In my brain this adds up to … Don’t do it! I will literally feel guilty through the whole experience. My wife on the other hand must have it. It is an imperative for her. It must be something new and exciting or it literally does not count. We are almost 2 ends of the spectrum.

There was one year we were faced with job loss. We were confident at the inevitability so we made sensible preparations including no vacation that year. This would be a sticking point between us for years. Thank God the layoffs passed us with no incident. This trial did make me better understand the implications of not vacationing and feelings of guilt about it. I had to think about it like this … God even takes vacations. Genesis 2:2-3 “By the seventh day God completed His work which He had done, and He rested on the seventh day from all His work which He had done. Then God blessed the seventh day and sanctified it, because in it He rested from all His work which God had created and made.” and Jesus took time to rest in Mark 6:31 “And He said to them, Come away by yourselves to a secluded place and rest a while.” Jesus commanded the apostles to take a break. There are even statistics to prove the health benefits. A story done by CNN cited that men who did not take vacations were 30% more likely to have a heart attack and women 50%. Plus we perform better at work when allowed time to stop thinking about it. Psalm 128:2 “You shall eat of the fruit of your hands, You will be happy and it will be well with you.” Taking vacations allows us to set aside and appreciate the benefits of the abundance God has provided. By following God’s command to take time off we are investing in our spiritual, mental and physical future.

Now the catch. You knew there must be one. The Apostle Paul set up churches on his vacations and Jesus had the most important teaching moments during his time with the apostles. Christians are always on mission Psalm 96:3 “Tell of His glory among the nations, His wonderful deeds among all the peoples.” and 1 Peter 2:12 “Keep your behavior excellent among the gentiles, so that in the thing in which they slander you as evildoers, they may because of your good deeds, as they observe them, glorify God in the day of visitation.” We are representatives of Christ wherever we go. Act appropriately! Vacations are not a free pass to forget who you are. People see and know that you are a Christian.

The other catch. Yes, there are two. Romans 13:8 “Owe nothing to anyone …” You do not need to go into debt over a vacation. It does not have to be a trip to an exotic destination. Visit a relative, go camping or a stay at the beach. Everyone loves something different so be imaginative and don’t break the budget. The amount you spend is not as important as the getting away.

1. If vacations are causing you a sinful attitude then pray right now for forgiveness. Ask for God’s help in resolving these issues.

2. Prayerfully consider what type of vacations will allow you to reset your brain then figure out what you can afford while adjusting your vacation plan accordingly.

3. Be thankful for God’s provision in allowing you to follow His command and take a vacation.

Now my family takes guilt free vacations that are always within our means. My wife and I agree to go different places every year. Some more exotic than others but always something new. What I have realized is that vacations not only get me to think differently, it has improved our marriage. We now fondly remember the camping trip we slept in a puddle while it poured outside and everyone was drenched. Knowing that vacations are a requirement allows me to enjoy them with less stress and guilt. There is much less pressure to cram in as much as possible. They are indeed a time of bonding even in those times things did not go as planned. Those turn out to be the best times in many cases. Prayers now kick off every trip. This makes God top of mind at every getaway. So go ahead, you now have permission to blow off some steam and take a vacation.

My prayer for you is that you would be able to reboot and find rest in ways that allow you to bring God with you on vacation.