Manage your money – 3 Tips
Although the Bible doesn’t tell us that money is evil – it is actually amoral as it has no emotions, no thoughts or ideas. But the Bible does tell us that the love of money is the root of ALL kinds of evil (1 Timothy 6:10). That must make us take pause and see why God is so adamant against the “love of money”. You need to manage your money.
That’s why it is important to manage your money.
When we took Financial Peace with Dave Ramsey we learned some very important tips in getting control of your money. This is an act of will. And as Dave says: “It is as you will it.” This is just the beginning of getting a handle on money but I thought I would share the first 3 tips with you today. If you are near a church that is running a Dave Ramsey Financial Peace University – GO.
Three Tips to manage your money
1.The Emergency Fund:
This is the most important thing for every family to start to build – forgetting everything else until you have this in hand. Start putting money aside to build up your first one thousand dollars. Put it where you cannot reach it easily but that you can access it if you have an emergency. Dave gives many ways to build up this fund. You can sell “stuff”. Yes all that stuff you have stored in your homes, your closets or your storage units. Get the money. You can get a short-term second job – whatever you can do. You must change your mental thinking. It is a paradigm shift. Pray for God to reveal the way to do this.
2.Tackle your debt:
We were told that back in the 1900s credit was not issued and people had to pay with the money they had. (Novel idea, eh?) Both Sears and Ford did not offer credit at first. By the 1950s credit cards started to enter the marketplace. Banks became smarter and smarter (we became not so smart). Today they offer credit to younger and younger people – to get them into their branding and to start a trend of buying before you have the money.
(Dave’s talk – paraphrased)
Banks are much better at selling than we (as consumers) are at buying. (Dave’s talk – paraphrased)
The borrower is a SLAVE to the lender (Proverbs 22:7).
The first step, after building an emergency fund, is to tackle the debt. Dave Ramsey suggests a method he calls the Snowball Method. After writing down your debts in a list, you tackle the smallest one first. Work on that hard (an extra job, helping out, selling, or just watching what you spend until you get this done). Once you have paid that off – then you take the payment you have been making on it and add it to the second debt. Work. Work Work. Get this finished.
Dave says we need to have a “plasectomy” – get rid of the plastic. Cut it up. Quit borrowing more money. Stop. Don’t buy anything but essentials until you get out of debt.
3.Get a 3-6 month emergency fund:
This is important – in case you lose your job, or get sick. Once again work on it – work on it – work on it. It becomes your entire focus.
Some great quotes:
If your broke friends are making fun of you, you are on the right track!
It is an attitude change. There is hope. We must think differently. Life is too short to be normal.
Rich people ask “How Much”, Broke people ask “How much Down, How much a month.” If you cant pay for it, you cant afford it.
— Dave Ramsey (@DaveRamsey) October 13, 2016
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