financial freedom God's way - Harvey Nowland

It is important to know why you want to become financially free. This may seem like a “no-brainer.” After all, why would you want to be in financial bondage because of debt? Freedom-from-debt freedom looks like the logical choice. Nevertheless, your motivation for becoming debt free is important. Being released from the tension and anxiety of debt and being able to do what you want, when you want, might be high on a priority list. But for the Christian, learning God’s biblical principles of finances, and practicing them in order to become debt free, actually is a path to know Christ more intimately and be financially free to serve Him. This means, however, that you must trust God and be willing to submit to His will and direction. We say we trust God, but there’s a great difference between saying and trusting. Often we trust if it’s convenient or necessary as a last resort. God expects us to trust Him daily, in all things. If you’re serious about becoming financially free, take these action steps: Transfer ownership to God. Recognize that God really owns what you have and that includes your family as well as your time and things. Recognize this biblical principle or it will be impossible to free yourself financially. "The earth is the Lord’s, and all it contains, the world, and those who dwell in it." (Psalm 24:1 NASB) Get out of debt. Break the habits that keep you in debt – like spending more than you earn and borrowing. Save so you don’t have to borrow. "Better is a little with the fear of the Lord than great treasure and turmoil with it." (Proverbs 15:16 NASB) Accept God’s provision for you. God is wiser than you are and He will provide for your needs just as He promised. "Do not worry then, saying, ‘What will we eat?’ or ‘What will we drink?’ or ‘What will we wear for clothing?’ " (Matthew 6:31 NASB). Refuse temptations to make hasty financial decisions. Don’t buy into get-rich-quick schemes or be pressured to make quick decisions based on incomplete information. "The plans of the diligent lead surely to advantage, but everyone who is hasty comes surely to poverty." (Proverbs 21:5 NASB) Strive for excellence in all you do. Set high standards for yourself and your family. Humility doesn’t mean second best. "Whoever speaks is to do so as one who is speaking the utterance of God; whoever serves is to do so as one who is serving by the strength which God supplies; so that in all things God may be glorified through Jesus Christ, to whom belongs the glory and dominion forever and ever." (1 Peter 4:11 NASB) Seek contentment through your relationship with God. A discontented spirit produces greed and covetousness. Contentment results from a proper relationship with God based on accepting the lifestyle that He has made provision for in your life. "I have learned to be content in whatever circumstances I am. I know how to get along with humble means, and I also know how to live in prosperity; in any and every circumstance I have learned the secret of being filled and going hungry, both of having abundance and suffering need." (Philippians 4:11-12 NASB) Believe God’s promise that your needs will be met. Sometimes He’ll do this through the abundance of others; however, He never promises to provide equally for everyone. As a Christian, learn to accept God’s provision for you, because it is clear evidence of the role He has designed for you in His plan. Accept His provision without resentment because, "At this present time your abundance being a supply for their need, so that their abundance also may become a supply for your need, that there may be equality." (2 Corinthians 8:14 NASB).

Common Errors That Lead to Debt

There may be an endless list of errors that lead to debt, but two always seem to bob to the top. by Harvey Nowland Debt isn't the same as credit. If you have credit, it means that a mutual trust relationship exists between a lender and you, the borrower. The Bible doesn’t say that we cannot borrow, but God does warn against the undisciplined use of credit relationships, because they can quickly lead to uncontrolled debt. It seems amazing — considering all of the financial related commercials bombarding us — that most people aren’t trained to handle money. A common attitude is: If I want it, I'll get it, because I deserve it. And, if I don't have the money, I’ll charge it. It’s the attitude that says we should "get what we want, when we want it." The concept of saving to buy something seems alien. There may be an endless list of errors that lead to debt, but two always seem to bob to the top.

Buying too much house

Everyone enjoys a nice house, and a common practice is to buy based on how much monthly payment you can afford. However, a better test would be to determine just what you need, and not simply what you want, because things such as job loss and health issues can quickly impact that affordable monthly payment.

Buying too much auto

Larry Burkett used to say, "The best car to drive is probably the one you’re driving now." And unless it happens to be a gas-guzzling SUV — with today’s prices for a gallon of gas averaging $2.10 (as of March 2005*) and rising — you should probably plan to keep on driving it. If you must buy, a good quality used car from a trusted source will save you the thousands of dollars that you would lose when driving a new car off the lot. Here are some other common errors:

Vacation

Everyone needs rest and recreation. The big vacation error is paying for your playing with plastic. The key is to have an affordable vacation budget. Then, plan a getaway that fits your budget and not one that is based on what your credit cards will allow. Compare transportation and lodging prices on the Web. Even with today's gas prices, consider driving. Pack sandwiches, fruit, beverages and snacks, instead of eating in restaurants. Choose lodging with free breakfasts and swimming pools. Restaurants charge less for lunch than dinner, so treat yourself to good eating at noon.

Poor planning

– A budget is a written plan for managing your money, and without such a plan — unless you’re one of the fortunate few with an endless supply of money — you could be setting yourself up for unnecessary debt.

Credit and credit cards

– These don't cause financial problems, but abusing and misusing your credit and credit card does. This may sound strange, but don't automatically assume that you need more money if you're unable to pay your bills. More than likely, what you need is to regulate the way you’re managing your spending.

Don't borrow

– Borrowing doesn't relieve debt. Home equity loans and transferring credit card balances to lower rate cards generally won’t solve your debt or overspending problem. You must treat the debt problem with disciplined spending habits, take on no new debt and pay off your existing debt. It doesn't take much to get into debt, but the process of untangling yourself from debt's bondage can be daunting. When indebtedness shackles you to your creditors, you are not free to serve God fully.

Decide to get out of debt now — and stay out. With God's help, partnered with your discipline, you can. "A sensible person sees danger and takes cover, but the inexperienced keep going and are punished." (Proverbs 22:3 HCSB)