Estimated reading time: 6 minute(s)
A couple conversations of late have reminded me of a book I read a while back (at the recommendation of a friend who had really loved it) regarding the management of money.
It was (and is) particularly relevant as we are facing mountainous debt (accumulated over many years, and some the result of “questionable” business practice by others…) and God convinced us that trusting him even more—by only spending money when we actually have it—that life would go even better for us. Or perhaps better stated, that life would continue to get harder if we didn’t do that.
(If you like reading, see this post, and this one, too. Good historical accounts of God’s direction for us.)
So in recent conversations, I’ve been very encouraged that people are getting smarter about money. Maybe not everyone. And maybe the people I’ve been talking with recently have always been smart. But either way, it’s so nice to see the results of diligence and wisdom in money management.
A friend of mine told me today that their house would be completely paid off this year, and both of their cars by next year. Debt free. All by the age of 35. That’s awesome. Other friends tell similar stories, and almost always it is a result of being smart with the money you have.
Our culture has for too long thought that you could spend money you’d make later. (Just look at how our government, from federal down to local, handles money and budgets!) That just doesn’t really work. In a way, it seems there’s no other way to purchase something as large as a house, but we’ve heard stories of young adults who have saved up to purchase their first home with cash (and did!) so we’re already starting Ian (our oldest) on such a savings path. Rather than instant gratification—enjoy now, pay later—Ian is learning the value of saving, which in the end means you keep much more of your money, and usually get to enjoy the things you wanted to anyway. And more!
We are coming up on three years of not adding any debt to our existing debt. That means that the overall amount is coming down. That’s fantastic. And it’s fun to hear real-life examples along the way.
Do you have one? Feel free to share it here. Hope you, too, are your money’s master, rather than the reverse.
Hey Gregg- All I can say is we have looked at other authors and programs for “financial fitness” and only Dave Ramsey has made a difference to us. We are currently enrolled in “Financial Peace University” (FPU) and we are so excited to dive into our new lives of financial control and peace! Love his stuff!
Pay God first…
Pay yourself (save)…
Pay off debt!
It works for us, we have never had credit card debt just because my Grandpa taught me how much a pair of jeans cost when you use a credit card and only pay the bare bones payment every month. I figured out early that it pays to save first and then purchase. We dont have car debt for the same reason, they just cost less that way… A LOT LESS!! 🙂
House will be paid off (15 year mortgage with double payments) in… well hopefully sooner than latter. With a rental to pay the taxses. (we hope!) When we sold our last house instead of trading ‘up’ with the equity we traded ‘down’ or even in my mind but less $$mortgage$$.
God gave us freedom of choice.
I choose not to pay interest whenever possible! 😉
seems to be working ok.
peace out
Aub
I have never read your guy, he sounds good. We LOVE Mary Hunt and her financial plan. We have six months salary saved up for ‘rainy’ day stuff or just in case, because of her plan. I thank God for a Husband who cares, and Children who don’t seem to ‘want’ everything out in the world. I know Jen feels the same way about you working on this, what wife would not be grateful!?!
Yeah, interest is a bad thing. It’s understandable, and when it’s reasonable and standard (not compounded daily like credit cards) it’s certainly more doable, but really, it’s just better to only use the money God has given you. Only buy what you can afford. Pretty simple, actually!