Five-Step Debt Free Living Action Plan
Steps 1 & 2
Intro
"Debt Free Living God's Way" is what God wants for each one of us. It's His plan for you. "Debt Free Living God's Way" is peace with God as you learn to manage all that He places into your spiritual trust account. "Debt Free Living God's Way" is literally the absence of financial bondage--the absence of fear and worry. That is what "Debt Free Living God's Way" is, but how do you get it? What specifically can you do? Add to your understanding of God's Path to "Debt Free Living God's Way." Add a "Debt Free Living God's Way" Action Plan.
Step One: Learn to write down your budget plans.
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Put pen to paper and write down whatever you, your family, and the Lord decide is appropriate in every budget category (housing, transportation, food, entertainment, medical, clothing, etc.) Why? Because, having no written plan is the same as having no plan. According to God's Word, not to plan is slothful. God wants you to be disciplined, organized, and yet not legalistic. One way to become disciplined and organized in your planning, especially in budget planning, is to write down your plans. Well thought out, prayed over and written down plans help strike a balance between slothfulness and legalism.
Step Two: Identify your needs, wants and desires.
"Needs" are the basic material necessities of life. Needs are the minimum amounts it takes to provide housing, food, clothing, medical care, etc. "Wants" cover the same budget categories but at a higher quality or quantity level. "Desires" cover the same budgeting areas but at a level where price is no object.
Let me give you an example. In our society today, most of us have a requirement for transportation--we need some way to get around. Most of the time this transportation requirement is met in the form of a car. A "needs" level car could be a 1985 VW bug with faded red paint and torn upholstery for about $700. A car at the "wants" level could be a 1990 Chevy for about $3500--bigger, more room, air conditioning, etc. But if money were no object, we might fulfill the transportation requirement at the "desires" level with a new $125,000 Mercedes-Benz.
You should consider your needs, wants and desires for every budget category. Are you operating at the needs level in one or more areas?
Perhaps God is providing the resources to live at the wants level. If so, and the resources are available to stay at this level, great.
Sometimes, after all your obligations have been met, you can use some of your surplus funds to reach for some of your desires. Many times God will give you the desires of your heart.
Once you identify your needs, wants and desires it will be much easier to change your lifestyle if you have a hard time paying your bills. It is hard to cut much from the needs level. It can be easier to move from wants to needs, or from desires to wants or needs.
• One of the best ways for you to move to lower levels of satisfaction (from wants to needs, etc.) is to do some of the things around the house yourself rather than hiring it done. This may be a little inconvenient, but it's a great way to save money. For example you can change our own oil in the car, do your own pest control, or fix your own leaky faucets, etc.
• You can also substitute lower depreciation items for higher ones. For example you can use Consumer Reports to help select the best buy. You can buy used cars, or make your current car last a little longer. By the way, most cars are not worn out in the first four years of life—they are traded in just because the owners get tired of them or because the maintenance has been so neglected they're afraid of them. Cars cost you dearly in the first four years, but in the second four years and beyond, they begin to get a lot more reasonable if they are properly cared for.
• You can learn to cut back on buying "convenience" items like paper plates, prepared foods, etc.
• Look for ways to conserve. I believe we need to do more of this anyway, but this is especially important to someone trying to reduce expenses and get out of debt. Learn to turn off the lights, turn off the faucets, adjust the thermostat, turn off the kids, use menus and coupons to shop for food, or join a food coop. Adjust your driving habits and consolidate trips to save gas.
Most of us try to get out of debt while we try to maintain the same self-indulgent lifestyle that got us into debt in the first place. Then we wonder why we fail. We wonder why we don't see God's hand at work.
The first step in your Financial Action Plan is to reduce your financial plans to writing. Then, step two, learn to understand and adjust your needs, wants and desires.
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Bob Louder is the Founder and President of Christian Financial Ministries (www.good-steward.org). Bob is also the author of the new best selling book, "Debt Free Living God's Way," available only on the Internet (www.debtfreelivinggodsway.org). Since 1987 Bob has helped people in hundreds of churches all across the country and in the European military community learn, understand, apply and pass on "Debt Free Living God's Way" principles and practical applications. He has represented some of the top Christian financial authors and ministries to include Larry Burkett, Dave Ramsey, Christian Financial Concepts, and Crown Ministries.
Copyright 2006 Christian Financial Ministries, Inc., All Rights Reserved. You may reprint this "Special Report" in whole or in part without permission from Christian Financial Ministries, Inc. Please credit material used to Christian Financial Ministries, Inc.
