Managing Money God’s Way

Today being Friday I thought I would give you all some links to things being talked about at other financial blogs.  Happy Reading!

Over at The Digerati Life there is another great article on how other world currencies have fared compared to the dollar.

My Money Blog is talking about the Hawthorne Effect and Better money Management.

A timely article on what to do when facing foreclosure over at CashMoneyLife.

Get Rich Slowly has a good article on what to do after you use your emergency fund.

Happy reading to all of you, and I will be back on Monday with another week of posts!

Recognize the four “Ititudes that foster debt:

1. Ignorance – Lack of financial training (Proverbs 22:3)
2. Indulgence – Unrestrained gratification (Proverbs 13:25)
3. Imprudence – Poor planning (Proverbs 16:3)
4. Isolation – Lack of communication (Proverbs 28:13)

Steps you can take to defeat the “Ititudes”

• Establish the right balance in your life when it comes to money in your life.
• Stop borrowing immediately.
• Build your emergency fund to $1000.
• Eliminate you credit card and consumer debt.
• Avoid careless spending
• Focus on what you have, not on what you lack.
• Generate excess cash through reduced spending, extra income, evaluating assets, selling things, yard sales, etc.
• Apply excess cash to debt reduction

I know to some this may seem very simple steps.  You may be saying why I even bother to post something so simple.  But that is the beauty of it.  It is some very simple steps we can all begin to take to turn our financial lives around.

I was thinking today about some of the stupid money mistakes I have made over the years and wanted to share with everyone some of those “hazards” and some simple remedies you might think about using.

Credit Card Debt Mistakes

• Impulsive purchases (buying what you can’t afford/not using budget in spending decisions).

• Acquiring multiple cards (exceeding manageable credit limit).

• Carrying a balance and/or making minimum or late payments.

• Using cash advances on one card to pay another.

Credit Card Remedies – Before you buy!

• Use Impulse list.

• Ask yourself, “What does it really cost?”

• Avoid the dangers of consolidation loans.

• Obey the 3 Laws of the Least to minimize borrowing cost:

Borrow the LEAST AMOUNT possible (Most effective)

Borrow the LEAST PERCENTAGE RATE possible (Least effective)

Borrow for the LEAST TIME possible (Moderately effective)

Automobile Mistakes

• Not calculating the total costs (purchase based on monthly payment rather than the financial setup).
• The leasing trap.
• Frequent turnover.
• Lack of maintenance.

Automobile Remedies

• Compute purchase price over the life of the loan; consider insurance and maintenance. (after warranty period)
• Retain vehicle well beyond loan expiration – continue making payments to your account to prepare for the next purchase.
• Downscale your car(s) to reduce debt.
• Purchase is generally favorable to leasing.  Purchase pre-owned vehicle.

Housing Mistakes

• Buying too much house – not calculating total cost (limits ability to balance the budget).
• Buying without an operational budget.
• Borrowing the down payment.
• Buying one before selling the other.
• “I need the tax deduction.”
• Unstable life or work.

Housing Remedies

• Compute all cost to include payment, insurance, taxes, closing costs, maintenance, improvements, life expectancy of appliance, etc.
• Ensure total cost fits within budget allocation for housing.
• Rent, if necessary, while saving for more down payment.
• Receive the same tax deduction by giving instead of paying interest.
• Resist home equity lines of credit.
• Prepay the mortgage.

That’s it for today.  Some simple mistakes we all can/do make and some simple ways to avoid them.

This is an on-going discussion of Robert Kiyosaki’s book:  Rich Dad’s Increase Your Financial IQ: Get Smarter with Your Money

Do you want to make more money?  Don’t have enough money at the end of the month?  Have you asked yourself why you want to make more money?  Do you think that will automatically bring you happiness? Let’s answer these questions.

Do you want to make more money?

I think everyone at one time or another has the goal of making more money.  I am not here today to give you any ideas on how to do that, or some get rich quick scheme.  I will say that if you have a goal of making more money, do you have a process you are following to reach that goal?  If not, I would say that you just want the money and not the process (ie. you don’t want to do anything to make more money, you just want it given to you).  Life is a learning adventure.  You want to make more money, learn something new you are interested in to use as a part time income.

Don’t have enough money at the end of the month?

How are you spending your money?  Do you have a budget?  Again, is the process to much for you?  Then I am afraid you will fail to have enough money every month because you are not taking the time to understand how you are spending your money.

Do you think more money will bring you happiness?

Sure it will.  Just ask those who have won the lottery.  I have found that it is in the times when I have little, that I am the happiest.  There was a time I was out of work for 3 years and did not know from month to month how I was going to make my mortgage payment, or buy food, or pay for electricity.  We relied on God to supply our needs.  We eliminated every unnecessary expense from our budget.  We got rid of cable tv, internet, cell phones, eating out, etc.  I can tell you, we survived that time and we were not any less happy then we are now.

Can I sum it up?  You need to come to realize that your problems will never go away.  So face them head on, develop a process and learn from it!

I have just started reading for the second time a book by Robert Kiyosaki titled:  Rich Dad’s Increase Your Financial IQ: Get Smarter with Your Money

I have found that for most this is a love or hate relationship. I happen to like what Kiyosaki has to say in his books.  This one in particular really hits home.  It talks about increasing your financial intellegence and therefore your financial IQ.  I have been really thinking alot lately about financial education and my desire to increase my knowledge in this area.

I began thinking about how I best learn and realized it was from a couple of different ways.  First, is from reading books like this.  Most of the time I need to read them twice to really discover all that I should learn from them.  The second way, is from simulation or by playing games.

I want to begin a series on talking about the 5 Financial Intellegences or IQ’s we should all strive to master, and also begin to post tutorials on how to do some of the things I talk about (again I learn better through example, simulation, games).

The Five Financial IQ’s

Financial IQ # 1:  Making More Money

Financial IQ # 2:  Protecting Your Money

Financial IQ # 3:  Budgeting Your Money

Financial IQ # 4:  Leveraging Your Money

Financial IQ # 5:  Improving Your Financial Information

Let’s learn together!

Today being Friday I thought I would give you all some links to things being talked about at other financial blogs.  Happy Reading!

Over at The Digerati Life you can read a great article on how to get a Personal Loan.

At Cash Money Life, Patrick has an article on Current Coupons and Money Saving Offers!

I have talked alot here about paying off debt.  Over at Your Money Relationship, 3 methods of paying off debt are looked at.

Christian Money Mountain has an interesting article regarding retirement costs.

And finally, over at Five Cent Nickel, there is a good article on Investment Advice.

Happy Reading everyone and I will talk to you on Monday.  Have a great weekend!

I want to be successful.  I work a full-time job right now as well as writing and developing this blog.  I look forward to the day when this blog as well as some others I am working on are wildly successful and I can leave the confines of my cubicle.  But what I get to look forward to is having the crap taxed out of me!  Just what I always wanted, to strive to become successful, maybe climb out of the middle class and pay 50% or more of my income in taxes.

Don’t believe me?  I want to share with you today a couple of links to some editorials that I found at Investors Business Daily.

http://www.ibdeditorials.com/IBDArticles.aspx?id=332548165656854.  This editorial talks about how once ObamaCare is passed, you will no longer have an option to choose private health insurance, unless of course you stay at your current job the rest of your life.

http://www.nypost.com/seven/07162009/news/regionalnews/dem_health_rx_a_poion_pill_in_ny_179525.htm.  This article describes the tax ramifications to the average New York citizen and will not be too far off for the rest of us.

http://www.ibdeditorials.com/IBDArticles.aspx?id=332548363747293.  This article describes how they are trying to make the public ObamaCare option a “right”.

So in other words, we have a “right” and “obligation” as successful people to pay the tab for the healthcare that we will have no choice in accepting, because it has become a “right” as an American Citizen!

What do all of you think.  Please sound off and let me know!

Being truly financially free is being free from the bondage of debt.  The ultimate goal should be to have all consumer debt (credit cards, student loans, car loans, etc.) and your mortgage paid off.  This will allow you to be open to where God may lead.

The behaviors I speak of today come directly from 1 Timothy 6:17-19 – “Instruct those who are rich in this present world not to be conceited or to fix their hope on the uncertainty of riches, but on God, who richly supplies us with all things to enjoy.  Instruct them to do good, to be rich in good works, to be generous and ready to share, storing up for themselves the treasure of a good foundation for the future, so that they may take hold of that which is life indeed.”

Behaviors for the Financially Free

• Don’t be conceited – verse 17
• Don’t fix your hope on riches – verse 17
• Fix your hope on God – verse 17
• Don’t feel bad about what God supplies you – He wants you to enjoy His gifts and provision – verse 17
• Do good and be rich in good works – verse 18
• Be generous and ready to share – verse 18
• Storing the treasure of a good foundation for the future – verse 19
• Take hold of that which is life indeed – verse 19

I think this is a great reminder to us all and something I look forward to as I strive to break the bondage of debt and become Financially Free!

Have you ever been driving down the road looking for a street you need to turn on and somehow miss the signpost?  It has happened to me many times.  But what does that have to do with financial freedom?  If you are not looking for the signpost, you will miss the turn-off.

Financial freedom can be defined many different ways.  The definition I will use is:  True Financial Freedom is freedom from the bondage of debts, oppression of others, envy, greed, or resentfulness.  So how can we achieve true financial freedom?  By understanding how God uses money in our lives.

How God Uses Money in Our Lives

• He demonstrates His faithfulness. – Lamentations 3:22
• He reveals our need for Jesus. – Galatians 5:19-21
• He stimulates our prayer lives. – Matthew 7:7-8
• He cultivates self-control in our lives. – Galatians 5:22-23
• He clarifies life values:  God first; others before self(eternal vs. earthly). – Matthew 6:21
• He teaches cooperation and communication in:
  • Marriage – Genesis 2:24
  • Through accountability – Proverbs 27:17
• He provides direction and timing in our lives: (Hebrews 13:20-21; Matthew 25:1-13)
• Through supply – Philippians 4:19
• Through withholding – Galatians 6:9

Tomorrow, I will talk about some of the behaviors for the financially free.

In my previous post on Friday, I talked about being in financial bondage.  In that post, I stated that financial bondage is “the state of being captivated or overwhelmed by money matters, including mental or spiritual concerns.  In today’s post I want to share with you what I feel are the 9 symptoms of financial bondage.  If you have one or more of these symptoms, you more than likely are in financial bondage.  All the verses I quote below are from the New International Version.

9 Symptoms of Financial Bondage

• You have a Get rich quick attitude.  Proverbs 28:22 – “A stingy man is eager to get rich and is unaware that poverty awaits him.”  You know who you are.  You are out buying lottery tickets, or looking up every get rich quick scheme you can find on the internet.
• Overdue bills, late fees.  Proverbs 3:27-28 – “Do not withhold good from those who deserve it, when it is in your power to act.  Do not say to your neighbor, “Come back later; I’ll give it tomorrow”-when you now have it with you.”  Paying your credit cards late?  Incurring late payment fee’s?
• Making minimum payments, over-limit fees.  I would say this one is ok if you are working on paying off your debt utilizing the debt snowball method, because you are paying more than the minimum of something to get it payed off.
• Cash advance on one credit card to pay the payment on another.
• Worry, envy, resentment, bitterness, pride, rebellion.  Hebrews 12:15 – “See to it that no one misses the grace of God and that no bitter root grows up to cause trouble and defile many.”
• Conflict in relationships.  Proverbs 15:16 – “Better a little with the dear of the LORD than great wealth with turmoil.”
• Lack of sharing.  Ecclesiastes 5:13 – “I have seen a grievous evil under the sun:  wealth hoarded to the harm of its owner.”
• Hasty decisions (not counting the costs; operating without a plan).  Proverbs 21:5 – “The plans of the diligent lead to profit as surely as haste leads to poverty.”
• Result:  unmet needs in the family; overcommitment to work; unplanned emergencies.  Proverbs 21:20 – “In the house of the wise are stores of choice food and oil, but a foolish man devours all he has.”

While writing this article I had to stop and think for a few moments, and come to the conclusion that I AM in financial bondage at this time.  My wife and I are working towards becoming debt free, but somethings have happened recently that have caused a few setbacks and have caused me to display some of these symptoms.

Please let me know if you have recently suffered from any of the above symptoms.  Keep coming back, as we work through this together!