Many people were caught up in the economic downturn, credit, mortgage foreclosure, bankruptcy, and financial bondage mess that occurred from 2007 through 2009. Many have been unable to continue making monthly payments on their home, vacation, rental properties, and other loans due to reduced income, layoffs, lack of emergency funds and other savings, etc. Quite a number had financial institutions foreclose on their properties, filed bankruptcy, or had property repossessed. Others are simply pressed to their wits end even now trying to figure out how they’re going to stay afloat financially.
No doubt some catastrophes occurred, the type of which, some people could not possibly have foreseen at the time they signed for mortgages and other loans. However, everyone is able to foresee danger ahead at least in the sense that everyone knows problems will occur every so often in life and they will need financial resources to help resolve them to relieve stress, be able to continue to pay bills, and avoid financial destitution and other bondages that will negatively affect them as a result of emergencies. The only way to appropriately and adequately handle such situations is by planning that helps you live a prudent lifestyle based on your income as well as employing consistent, reasonable, long-term saving and investment practices. This godly pattern allows you to avoid financial bondage that would otherwise be the result of such situations.
Unfortunately, many people chose not to follow biblical principles in managing their lives and money. Thus, they gave place to the devil, who goes about like a roaring lion seeking whom he may devour. Of course, he wasn’t going to tell them (1) the market would crash, or (2) they were going to lose their job or be laid off, or (3) they were putting themselves and family in bondage by signing for loans, or (4) they didn’t have the education and skill to profitably navigate investment situations that required leverage, speculating they would always be able to bring in enough revenue as a landlord to cover principle and other costs of loans they signed for).
The devil continues to whisper his word into their ears and yours; get everything you deserve and do not worry about your financial situation or tomorrow. This sounds very much like words spoken by Jesus, yet it is absent of instruction contained in the whole counsel of God (the bible), Just like what he said to Jesus when he was fasting in the wilderness, he looks to tempt all of us to do things not in our best interest by using similar incomplete, misconstrued instructions. However, studying the whole counsel of God tells us (a) to build a house only after counting the cost, (b) that wise people live within their current means and do not take out loans to finance things that do not normally appreciate in monetary value, (c) to set aside adequate savings and investments, and (d) to leave an inheritance to our children’s children.
You must understand, the devil wants to bring a mindset upon you that causes you to forsake the principles of God, or better yet, never regard them in the first place. Once he has influenced your mind to live according to the principles of worldly people around you and consider them sages worthy of your utmost attention, he knows you will bring destruction into your life and finances that will ruin your ability to use the highest potential the LORD planted in you. He wants you to look good on the outside but be rotten on the inside and to tell others of the highfalutin material things and worldly positions you’ve attained via debt so you can lead them into the same desires, activities, and bondage he led you into. For many, this process continues for quite some time while everything seems to be working out quite well. Then, suddenly out of nowhere destruction rears its head. This is the type of situation that led to the mess with unaffordable mortgages, car loans, overspending, foreclosures, repossessions, and bankruptcies many people experienced and that others will inevitably experience in the future unless they start listening to and following godly instruction.
Of course, many finance companies, developers, and real estate professionals were greedily feeding you the worldly method, so their coffers could get fat and bulge while you were gorging yourself on enormous amounts of mortgage and other debt. These are some of the many culprits beside you and your past failure to properly manage money and one is not more at fault than another. Some of these entities are now in financial trouble just like you and some have been liquidated and no longer exist.
If the description above fits you, just let it be a learning experience and put it behind you. Know, by the word of God, that you can move forward, be fruitful, and prosper when you’re willing to learn and apply biblical principles throughout the remainder of your life. Other people and institutions cannot and will not do it for you. The steps to getting your financial house in order are:
(1) Let God be involved in your finances through tithing and abundant offering. He honors those who honor Him!
(2) Budget your income. Prior to each month, write a monthly plan that describes how you’re going to spend income you reasonably expect to receive. You must estimate and subtract all known expense categories, so you know if you will have a surplus or deficit. Estimate your income versus expenses for each of the next six months in order to have a longer-term view of where you would be if you keep doing what you’ve been doing up to now. Then revise your budget based on the changes you need to make to truly be fruitful, profitable, and prosperous. This will reveal the great condition you can soon be in when you impose financial discipline on your life.
(3) You must save a starter emergency fund of $1,000 or so (with the intensity and focus of the lion that runs down the antelope). This money should be put in money market accounts at a local credit union or bank because it needs to be secure in short-term periods. It serves as financial self- insurance to meet emergency needs and help you avoid turning to loans to try and get yourself out of future jams.
(4) You must eliminate debt and stop cosigning (with the intensity and focus of the deer who outruns the cheetah). Cosigning is simply taking on someone else’s debt. You cannot afford your own and you certainly will not prosper taking on someone else’s debt. You also will not build wealth if you continue to hold onto the psychology that it is acceptable to continually take on more debt. When your budget shows a deficit, you must work extra jobs or create entrepreneurial endeavors that produce greater income to help cover necessities and more quickly eliminate debts.
The absolute first thing you have power to control is getting rid of things too expensive for your current situation (high value cars, motorcycles, boats, campers, and sometimes homes), so you can move forward in getting out of bondage and setting yourself up to build substantial wealth. You may be able to lessen some of your mortgage and debt obligations by having an honest discussion with lenders about your financial situation and requesting forbearance, mortgage modification, short sale, deed in lieu of foreclosure, or whatever other financial help it can offer to help you get out of the mess. The less you have to pay a lender is the more that you can put toward debt elimination and wealth building. Remember, you usually do not have the help you really need because you do not ask for it!
(5) Thereafter you must build an emergency fund of at least $10,000 and then invest at least 10% of your gross income for the long-term and plan to remain debt-free for life and every year increase your annual investment deposits by a percent or two. Over time, put the investment money into a diversified array of seven to eight holdings such as no load low expense total stock market index mutual funds with different brokerage houses, 401k, 403b, and Roth IRA plans. You need exposure to equity investments in order for the money to compound and exponentially grow from your younger age period to your older age period for purposes of greater proportional giving to spread the gospel and live comfortably in retirement while engaging reasonable desires like travel and senior entrepreneurial endeavors. Over long-term periods of 10, 20, and 30 years, such equity investments have historically delivered far higher average annual growth that you can get from bonds, CDs, and annuities, etc.
These steps and disciplines bring supernatural power to you for engaging debt freedom, greater blessing, and reward that gives you more income to invest each year, which catapults you much quicker out of financial bondage and into the wealthy place.
Please pray for this ministry and email me with any questions. May the LORD bless you richly as you follow His plan!
Proverbs 11:24-25, 12:15, 14:8, 16, 21:20, 22:7, 17, 27:23-24
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