Here is a very technical video explaining the uber complex, forgotten school of thought that believes you should not buy stuff you cannot afford.
Enjoy!
Pay off debt. Save. Give. Live your mission.
by Matt Jabs //
Here is a very technical video explaining the uber complex, forgotten school of thought that believes you should not buy stuff you cannot afford.
Enjoy!
by Matt Jabs //
Originally posted by J.D. of Get Rich Slowly
This article has some very good concrete steps to getting out of debt. I believe the contents that follow do follow biblical principles, even if J.D. didn’t do so purposely. Any faithful stewardship is on track to follow bible teachings, all you need to realize if you’re already working to rid your life of debt, is that God has granted you all that you have and you are just a steward of those things. Please read J.D.’s article and apply it to your life in the context of God’s Word. To be compliant with copyright laws, I am only posting snippets of the article here. To get the full Monty, please visit J.D.’s original post.
Debt elimination involves three steps:
- Stop acquiring new debt.
- Establish an emergency fund.
- Implement a debt snowball.
Here’s how to approach each step. (I’ll use Nick’s situation as an example, but the principles apply to everyone.)
Stop acquiring new debt
(This step can be accomplished in an afternoon.)
This may seem self-evident, but the reason your debt is out of control is that you keep adding to it. Stop using credit. Don’t finance anything. Cut up your credit cards. That last one can be tough. Don’t make excuses. I don’t care that other personal finance sites say that you shouldn’t cut them up. Destroy them. Stop rationalizing that you need them.
Establish an emergency fund
(This step will probably take several months.)
For some, this is counter-intuitive. Why save before paying off debt? Because if you don’t save first, you’re not going to be able to cope with unexpected expenses. Do not tell yourself that you can keep a credit card for emergencies. Destroy your credit cards; save cash for emergencies.
How much should you save? Ideally, you’d save $1,000 to start. (College students may be able to get by with $500.) This money is for emergencies only. It is not for frivolities. It is not for shoes. It is not for a Playstation 3. It is to be used when your car dies, or when you break your arm in a touch football game.
Implement a debt snowball
(This step may require several years.)
After you’ve stopped using credit, and after you’ve saved an emergency fund, then attack your existing debt. Attack it with vigor. Throw whatever you can at it.
Many people say to pay your high interest debts first. There’s no question that this makes the most sense mathematically. But if money were all about math, you wouldn’t have debt in the first place. Money is as much about emotion and psychology as it is about math. Psychologically, using a debt snowball offers big payoffs, payoffs that can spur you to further debt reduction.
If you apply disciplined prayer & God’s Word to these solid principles, you will be successful in reducing your debt!
by Matt Jabs //
I’d like to take this time to address and expound upon my newly formed category list for this website.
The categories I chose for DebtFreeAdventure are based upon the principles used in the book “Your Money Counts – The biblical guide to earning, spending, saving, investing, giving, and getting out of debt.” by Howard Dayton.
This website is in no way infringing upon the copyright of the book mentioned, instead it is a journal of one man’s chronicles to become debt free using the principles from said book.
Here is the category list I will be using along my description of each:
Let it be noted that my wife & I do not currently have any children, but of course we need to prepare ourselves to properly train our future children in the way of finances according to God’s Word.
I do not forsee any categories being added or taken away from this list, however I will do as the Lord leads me in this endeavor. My prayer for this website is that the Lord will lead me in my efforts, will work through me to help my family and my readers, and will bless my efforts abundantly; for without his blessing all is vain.