Finances, Part Two

Let’s start with a Bible verse.  (I refer to this as the Dave Ramsey verse because I think he is contractually obligated to say it 2.5 times per hour.) In The Message, Proverbs 22:7 says, “The poor are always ruled over by the rich, so don’t borrow and put yourself under their power.”  Other translations read, “the borrower is slave to the lender.”

This is the most important thing to remember as we go along.  Stop for just a second and, if you have debt, think about your debt.  Don’t you feel a tug on your spirit because of that debt?  Don’t you think to yourself sometimes, (even if you won’t admit it to anyone) “I feel like this debt is hanging around my neck”?  Dave Ramsey found a great verse to use to describe our relationship to debt.  It does feel like we are under the power of someone else when we owe them something.

Another thing happens, however, when we choose to take control of our personal finances and get out of debt.  That dreadful feeling lessens a little each month as those debts become smaller and smaller.  So, how do we get to the point where we have complete freedom?

To start with you need a plan.  You don’t wake up one morning and decide to get out of debt, you must have a plan.  My dad often says, “Plan your work and work your plan.”  So, there are all kinds of resources out there to help you with your planning.  In order to work that plan you first need tools.

I will mention a few of the tools that Courtney and I use as well as a few that we don’t use.  (Rest assured all tools are not created equally, you will need to try out a few of them until you find one that works for your situation.)

1. Mvelopes or Mint.com – Mvelopes and Mint are similar products that allow you to see exactly where your money is at all times using the tried and true envelope system.  Mvelopes is a paid service that Courtney and I use to manage our personal finances.  I have used Mint in the past and since it is free, it might be a great resource if cost is a factor for you.
2. Crown Financial Ministries or Dave Ramsey’s Total Money Makeover – Both of these organizations offer almost exactly the same plan for getting out of debt and taking control of your finances.  Dave Ramsey’s Total Money Makeover, while semi-Bible based is geared to a bit more secular market, while Crown Financial Ministries is much more geared toward the Christian market.  Both programs are excellent and we have used parts of both programs.  (I found out about Mvelopes through Crown.)
3. Scissors or Shredder – Either of these tools are very useful for cutting up your credit cards.  I used scissors because I couldn’t afford a shredder, but I have seen how easy a shredder chops up a card and can wholeheartedly recommend that as an option.
4. Spousal and/or Family Support – This is the only tool that is required.  It is not cheap, but it is required.  The task of eliminating debt and taking control of your personal finances is infinitely more difficult if our immediate family and spouses are not on board.  (If you are single, congratulations!  You only have to convince yourself to change!)

Now you have your tools ready to go.  Tomorrow we start tackling the debt and getting our plan together.  (Warning: Today was the easiest day.  All you did were check out the tools.  Even when building a house, buying the tools is always more fun than putting insulation in an attic in August.)