Nearly 80% of Americans are in debt and live paycheck to paycheck. There’s a lot to be said for this. There’s many cultural norms that we as Americans have adhered to without evaluating the benefits and risks involved. A few of which include the need to hold a credit card, live in a large new build construction home, and fall under the pressure to keep up with all the new products and technology at our fingertips. Don’t believe me? Just scroll Facebook for 60 seconds and see how many advertisements tempt you to purchase something you “need.” Our culture comes with a huge expense, and it usually results in a four letter word……D-E-B-T.

Walk with me and let’s not fall under a statistic. It’s going to take self-control and willingness to work hard, save and wait. Now, let’s tell your money where to go so you never wonder where it went!

1. Tithe

This is not placed as the first tip by coincidence. It’s strategically placed. “Do not hold back offerings from your granaries or your vats. You must give me the firstborn of your sons.” (Ex 22:29) Therefore, when God blesses us with money, we give back to him first. When we practice this, we validate that He’s first priority.

If you believe in God and you believe in the word of God, you have confidence that He will bless your giving. “Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this, says the Lord Almighty, and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it.” Mal 3:10 Did you catch that? God promises to bless us when we tithe! Who doesn’t want to be blessed by the creator of the Universe? Nowhere in the bible does it include an “if” after tithing. What if…I’m in debt? Yep…we’re still called to tithe. Don’t be mistaken, God doesn’t love you any less if you don’t tithe or any more if you are tithing. It doesn’t earn you salvation either. It does bless you! If you don’t believe me, He asks you to test Him in this!

2. Budget

Financially successful people keep good records. “By wisdom a house is built and through understanding it is established; through knowledge its rooms are filled with rare and beautiful treasures.” (Pr. 24:3,4)

This is where it gets ugly before it gets better and for me, the hardest part. If you are married, this should be done together with your spouse. I prefer to budget old school pencil and paper, but I do realize that’s not everyone’s style. For those who prefer to budget online, EveryDollar is an app you can keep right at your fingertips and can be accessed at www.everydollar.com. This tool can help you create a budget, set financial goals all the while track your spending. Dave Ramsey promotes a zero-based budget, which means your income minus your expenses equals zero. Remember, we’re telling your money where to go! This is where you may find areas that need to be cut. Don’t let this scare you, cuts can be temporary. This can also be tricky with an irregular paycheck, but if you chose EveryDollar to budget then you’ll find some tools to assist with this.

3. Beware Of Credit Cards

If there’s one way to accumulate debt at a rapid rate, it’s the use of a credit card! Many Americans keep hold of a credit card “in the event of an emergency.” However, it’s amazing how many more things we consider an emergency once we get in the habit of swiping. If you’re anything like I was, I didn’t even need to swipe it because I knew the number, expiration date and CVC code by heart. The truth is written to us in the Bible. “The rich rule over the poor, and the borrower is slave to the lender.” Proverbs 22:7 Rather than being a servant to Discover, let’s build an emergency fund in that budget.

4. Build Your Emergency Fund

A wise person puts money aside for when s/he may have less. “The wise store up choice food and olive oil, but fools gulp theirs down.” (Pv 21:20) Going back to tip #2, this should be put in the budget. If you’re spending all you’re bringing in, with nothing left to put aside to save then spending exceeds affordability. Dave Ramsey recommends beginning an emergency fund of $1,000 to better prepare yourself for emergencies and unforeseen events. However, after you’re able to pay down some debt he recommends building this fund to cover 3-6 months of expenses.

5. Pay off Debt

One thing I wasn’t aware of when we began paying our debtor’s off was that you can actually negotiate a settlement amount with your debtor. This was a game changer for us. If you can’t negotiate a settlement amount, sometimes you can negotiate the interest rate or payments. This doesn’t come without consequences and may affect your credit score, but depending on your scenario, may be a better option. Be sure to weigh the risks and benefits. For us, some of our debts were worth settling and others were not.

Dave Ramsey promotes the debt snowball effect. This means lining your debts from smallest to largest and begin paying the most you can on the smallest debt while making the minimum payment on the remaining debts. Once the smallest debt is paid off, the next smallest debt is chipped away at with the most you can pay each month while making the minimum payment on the remainder of the debts, and so on until all debts have been paid.

The key to using money wisely is to see how much we can use for God’s purpose. Now, let the hard work begin! “All hard work brings a profit, but mere talk leads only to poverty.” Proverbs 14:23

As a church we do not believe in doing life alone. We want to pray with you.

To submit a prayer request visit

www.legacychurchri.com/prayerandpraise

*****

Featured

Finances, Budgeting

Finding Freedom From Financial Struggle