When you spend all that you make and continually obtain loans and use credit cards to get everything you want, the day will come when you will have a mountain of bills you cannot pay. Some worldly pundits tout paying yourself first as the solution to all your financial problems. However, that method does not work, unless you know what your monthly net after-tax income and consistently spend less than that amount minus what you pay yourself first during the month. Otherwise, you will eventually stop paying yourself first and borrow it all back to obtain needed cash in order to pay creditors that have cajoled you into an unreasonable lifestyle given the income you thus far earn.
Do not be fooled, whether you are considered rich or poor, you can get into a habit of spending more than your net income. The bible instructs you to write your vision down on paper, so you can remember it and take steps to achieve it with His supernatural guidance & power. You must craft a giving saving spending plan (budget) in order to maintain good financial health. It will help you achieve the vision and callings He places on your life.
Discipline yourself to write down your estimated giving saving spending plan for each of the next six months. Then, be intentional on consulting it and following its pattern while refusing to ever again get caught in the borrowing/credit trap. This type of plan is a simple tool utilized to gauge monthly income versus expenditures so you can live within your means in a manner that allows you to take care of your top priorities and build wealth for the future.
First, write down your monthly net income from every source and total the figures. Then from that total subtract monthly tithes and offering and each of your anticipated expenditures (food, shelter, transportation, utilities, loan payments, etc.) based on your current obligations and spending. Tithing and offering should be the first category in the expenditure section of your budget because it honors the LORD for providing the means to care for yourself, family, and spread the gospel message. Next, account for payments for all necessities like rent, groceries, household utilities, etc. Next, subtract all other minimum payments such as car notes, credit card payments, mobile phone payments, etc.
Use all extra cash left over each month (after all minimum payments have been accounted for) to pay down your smallest total debt. When that creditor is completely paid off take all extra cash to pay down the creditor that is now owed the smallest amount until it is completely paid off. Continue this snowball pattern until all debt is completely eliminated. The snowball debt elimination method provides a psychological edge for people who need to see accounts paid off quicker in order to maintain focus and motivation to keep moving toward debt freedom. For most people with focus and determination it will take less than a couple of years to complete this task for non-mortgage debt and it immediately begins to increase your net worth and help you build wealth that will grow abundantly over time. The LORD promised to supply all your need when you commit to His way of doing things.
Please pray for this ministry, email me with any questions, and contact me to speak at your business/ministry’s conference/workshop. May the LORD bless you richly as you follow His plan!
Deuteronomy 28:12, Proverbs 17:18, Habakkuk 2:2-3, Luke 16:9, Romans 13:8
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