Borrowing money is not the way to have a comfortable lifestyle because debt places you in a very uncomfortable position. It causes most people to waste their wealth building ability trying to have things they want right now believing that’s what will make them happy in the long run. It also puts most people in financial bondage leaving them unable to adequately handle emergencies, living expenses during job layoffs, and other situations that require substantial infusions of cash.
Certainly, it’s not wrong to want things or to have things. Yet, when your outgo exceeds your income, your upkeep will be your downfall. Likewise, when you do not have substantial assets to produce income to provide for you and family during periods of low or no income, your monthly loan payments will be your downfall. You must learn that all things come in time – the right time; when the Lord has provided for you in such a way that you are able to, without debt, purchase the things you desire while maintaining a healthy emergency fund and growing asset base that will be able to provide income for your retirement / refirement years so you can pursue your passions (ministry, etc.) while enjoying the type of comfort you will need during those years.
If you do not work on being a good steward, creditors will continue to press you for payment in your worst financial position that will last much longer that you thought possible. The bible emphatically instructs you to avoid this trap knowing that it’s easy for "a borrower to become a slave to the lender." If you want to experience financial bondage and misery at crucial points in your life, many times when you least expect it, continue to follow the profligate ways of the world.
However, there is far better option available to you. You can put yourself in the condition of a lender instead of a borrower. This lender has few if any debts, more than adequate monthly income with far less in expenses, and a level of assets that is many times larger than debt that might be owed. In this position you will reap the financial benefits you currently pay your lenders.
Start your freedom from bondage process by cutting up your credit cards, leaving at most one low cost major credit card only for convenience in paying for drastic emergencies. Tithe as instructed by the Word. Set up a $1,000 emergency fund. Then use all disposable income above your current minimum monthly bill payments to pay off your non-mortgage account with the lowest total debt owed. When that is paid off, then use all disposable income to pay off the next lowest debt and so on.
Trust God to provide what you need and do not have cash to buy. Once your non-mortgage debts are paid off, increase your emergency fund to at least $10,000 and then invest the amount in your 401k or 403b that is necessary to get your company’s match. Use vehicles historically proven to bring reliable higher yields over the long term. Now, use disposable income as extra monthly mortgage principle, so your house can be paid off within seven years. Once this is paid off, then put the bulk of the increase monthly disposable income into investments in your 401k, 403b, Roth IRA, and other brokerage accounts and allow the market to do its long-term work of bringing you great investment growth.
By exhibiting patience, contentment, and self-control while committing to this plan your debt will be eliminated in due time and you'll accumulate wealth over the remaining course of your life. You'll then be a lender making money off the interest and growth you get from your savings and investments and, to a far greater degree, you’ll be able to give to kingdom ministry endeavors and those in need.
Please pray for this ministry and email any questions. May God bless you richly as you follow His plan!!!
Deuteronomy 28:12, Psalms 37:21, Proverbs 22:7, 27:23-24, and Romans 13:8
Please forward these bondage breaking articles to other people who can use helpful insight!!!
You can find books authored by Randy Parlor and Karen Parlor at www.Amazon.com
No comments:
Post a Comment