Being that Noel (the co-editor here at MoP) and I are going to see Dave Ramsey record some sessions for Lifechurch.tv tomorrow morning, I figured this would be a good time to post the first article in the “Financial” category.

Proverbs 22:7, “The rich rule over the poor, and the borrower is slave of the lender” (NRSV)

I’m sure I’m not the only one that has wanted to quit a job but was unable to because he couldn’t pay next months bills. I’d even dare say that I’m not the only one that has had suicide cross their mind because of their lack of financial hope. I’m here to tell you that there is hope and it abundantly. The goal is to tell your money what to do, not for it to tell you what you have to do

My wife Vicki and I took Dave’s “Financial Peace University” back when we were dating and managed to go totally debt free in our first year of marriage. Our lives and marriage have been all the better because of it. We RARELY have an argument about money. Since there is no tension or blame regarding debt we can communicate openly about where we can best spend our money.

In the interest of full disclosure we have incurred some debt recently. I had eye surgery, the total of which was over $11,000 (no insurance at the time). We had half of that in savings and thanks to a very generous, interest free loan from Vicki’s grandparents we didn’t have to put the balance on a credit card (saving anywhere from 18 to 22%) And, when I found myself without a vehicle to drive last week we took out a small auto loan from our Credit Union to get a little more reliable car with the baby on the way next month.

Having said that… I KNOW beyond a shadow of a doubt that I would not be in a house, driving the nicest car I’ve ever owned (its only 6 yrs old instead of 12yrs) or be in a position of strength instead of weakness, in these troubled times, if it weren’t for the lessons of Dave Ramsey, the encouragement of Craig Groeschel’s sermons, and the great money management of my wife! The goal for us wasn’t so much to be completely debt free but to have financial freedom and peace. Here are Dave’s 7 Baby Steps, and here’s how we did it:

• One Bank Account (For the married) No compromise. If each of you have a separate checking account then you have trust issues and you’ll never get on the same page financially or emotionally.
• Get serious You got in this mess by doing what you’ve always done, to get out- you have to decide to do life differently. Own your debt, take responsibility for changing your life so that you can get out of the hole. Eating out, lattes, clubbing, iTunes, whatever it is that steals your “margin,” cut it out.
• Start Tithing 10% off the top. It shows God you’re serious and he’ll begin to honor your efforts. I promise. The Three Month Tithing Challenge
• Put $1000 in an Emergency Savings Account and pray that God keeps things from breaking so you don’t have to use it. The problem with life is that things come up and stuff breaks down. However, nothing is as big of an emergency if you have money set aside to deal with the unexpected.
• Build your budget. “Spend every dime on paper before the month begins.” Write down all the places you have to spend money during the month (including splurges) and fill up the slots until you have no more money left. This shows you where ever bit of your paycheck is going. If you didn’t budget enough in one area take it from another slot so you’ll always know where the money is coming from and where its going out.
• Pay the Smallest Bills First Dave calls this the “Debt Snowball” Here’s how it works: Pay only the minimum balance on all your bills except the smallest. The idea is that you pay off the smallest bill first then take the money that was going to that debtor and start giving it to the next biggest debt. Then to the next so that you’re bills never increase but you increase your power to pay with each debt you pay off. The point of doing it this way is to gain success over the situation, not getting, potentially, bogged down in paying the highest interest rates first on a loan that may be the most daunting to get payed off.
• Start Saving Get 6 months of expenses in the bank. Life feels a lot different when you aren’t stressing over the number of days until your next check to get the light bill paid. Once you’ve got some money in the bank its worth more to you. You start thinking about where its going rather than making interest in your account. Start budgeting in giving, mission trips, being generous in the creative ways God puts on your heart. It gets FUN fast!

My work life took on a whole new dynamic when I wasn’t afraid of loosing my job for saying something unpopular. Being able to speak my mind (not be rude), give my honest opinion when asked, and not being afraid of cutbacks or layoffs. Once you get to the point where you can wait tables or flip burgers to pay your bills you know you’ve earned your freedom. Speaking of.. delivering pizza or selling a bunch of your junk on Craigslist on top of the job you have now may get you to that place a whole lot quicker.

More Resources:

DaveRamsey.com
The Mind Your Own Business series
Couples Resource Center
How to be Rich

Be assured there is no situation that is too dire to climb out of. More reading…