Seeking Finanical Freedom Part 6

If this is your first time checking in on Wednesdays, WELCOME! Each week we are talking about MONEY and how to handle it using the Bible as our blueprint. You will hear me discuss the book YOUR MONEY COUNTS by Howard Dayton. When I read this book it changed my whole mindset on how I viewed finances and really gave "us" a boost on our journey to DEBT FREE living! If you would like to check out this series from the beginning scroll down and on the left hand side of your screen you will see a Label titled "Seeking Financial Freedom" click on that and you can start with Part ONE and work your way through......Also feel free to let other people you know about this series and encourage them to join us each week as we talk more in depth about our journey!

This week we are talking about GETTING OUT OF DEBT-"D" Day!!

I love the opening paragraph on page 41.
We have so much personal debt in our nation that the average person has been described as someone driving on a bond-financed highway, in a bank financed car, fueled by chargecard-financed gasoline, going to buy furniture on the installment plan to put in his savings-and loan-financed home!

HOW TO GET OUT OF DEBT: (Page42)

Keep in mind that getting out of debt in as unique to each person as their story of how they got into debt...each situation is different, but you can use these following steps as a road map on your journey to true financial freedom!!!

The steps are simple, but following them requires HARD WORK!!!!!!!

1. PRAY. (2 Kings 4:1-7) Read this remarkable story of how the Lord multiplied what the widow had. The first step, prayer, is the most important. Ask the Lord for help, strength, and guidance in your journey to DEBT FREE LIVING. Is also is important to remember that he might act immediately like in 2 Kings, or slowly over time.
As people begin to eliminate debt and accelerate debt repayment, the Lord blesses their faithfulness. Even if you can afford only a small monthly prepayment to reduce your debt, DO IT! The Lord can multiply your efforts.

I know Justin and I can personally attest to following this first step.....When we started this journey 5 years ago on a single family income that didn't allow for much extra prepayment on our mortgage (that is our only debt). As we have continued to be faithful in this journey the Lord drastically multiplied our efforts in 2008. I am so thankful to the Lord for providing such great encouragement to our hearts......sometimes on this journey we have felt like we just weren't getting anywhere...even though we were...SLOWLY. Looking back over the past five years I am thankful for the Lord teaching us to eat this "big elephant" (aka: our mortgage) one small bite at a time. He has taught us the importance of being persistent in our faithfulness to Him, He has tested our true priorities, and most importantly he has continued to strengthen our faith in Him. We are amazed at the circumstances that He has allowed in our life to bless us financially (and in many other ways as well.)
This is not included in the book but I would also say that this is not a one-sided journey. Both you and your spouse have to be fully on board for this journey to be a true success. It doesn't matter who takes care of the financial end of things in your household...you both have to know what is going on so you can stay on the same page...and stay accountable to one another. So COMMUNICATION is HUGE!!!!!!

3. ESTABLISH A WRITTEN BUDGET.

Okay I said the "B" word!!! I know some of you have already clammed up just thinking about it!!!! So if the "B" word is just to much let's think of it another way....A Spending Plan....there isn't that better???? A written budget does a couple of things it helps you plan ahead and carefully manage your spending to see where you might be able to cut back. Also it keeps you and your spouse from doing impulse buying since you know you will have to be accountable.

Something you might also consider that we did in the beginning of the journey. If you have no clue on where to start with your budget, keep a little notebook with you and your spouse has one too...it can even be a slip of paper...just something to keep with you that you can write down every penny you spent that day and on what....Do this for 30 days.....at the end of that 30 days you will know exactly where your money went and what you spent it one....this will be a good start to where you begin your budget. I found for me it was also a great way for us to rein in MISC. spending....we thought about it more because we knew we had to write it down.

3. LIST YOU ASSETS- EVERYTHING YOU OWN

By making a list of the things you own you can assess to see if you should sell of those items to start reducing your debt. Maybe you have an extra car or a second car that you should get rid of to get serious about getting out of debt. The books says"Don't think about what your losing or what you paid for the item you're selling. Think about how much you will gain which can be applied to your immediate debt reduction."

4. LIST YOU LIABILITIES-EVERYTHING YOU OWE.

When you list your debt you can get an accurate picture of your current financial situation. Also list the interest rate your being charged for each creditor. Interest rates vary greatly and by listing each of these you can better decide where each one falls on the priority list in debt reduction. Here are the examples the book lists; Home Mortgage, Credit Card Companies, Bank, Installment Loans, Loan companies, Insurance Companies, Credit Union, Loans from Relatives, Other personal Loans, Business loans, Medical Loans, Other,

For each one List the Amount owed......Monthly Payment.......Interest Rate....

Well that is the first FOUR things you should do...let that be our homework for this week! Next week we will talk more about your next plan of action.....

Feel free to leave a comment, ask any questions...even personal questions are fine with me..I will do my best to answer them. REMEMBER TO DO YOUR HOMEWORK!!!!!