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Finances

God has called us to be wise stewards of our money. Being financially free means not having to worry about whether you have enough to pay your bills at the end of the month. It means being able to invest in the things that matter most in your life. It means having the ability to be a blessing to others. So, if you’re ready for that, then let’s get started!

STEP ONE: CREATE A ZERO-BALANCE BUDGET

1. WRITE DOWN YOUR TOTAL TAKE-HOME INCOME
  • Full, part-time, freelance jobs
  • Social security or pension checks
  • Royalties, etc.
2. LIST ALL YOUR EXPENSES
  • Housing
  • Insurance
  • Auto
  • Quarterly Payments
  • Food
  • ANYTHING that you spend money on

3. SUBTRACT ALL YOUR EXPENSES FROM THE TAKE-HOME TOTAL

1. Start with the most important expenses.

  • 10% tithe
  • Mortgage
  • Car & Gas
  • Utilities
  • Savings
  • Etc.

2. Then put in all of your debt minimums.

  • $25 Visa
  • $25 Mastercard
  • $ Medical bills
  • Etc.

3. Then all other expenses

  • Personal Care
  • Gifts
  • Etc.

Any money you have left, put towards your lowest debt (see Debt Snowball.)

Note: Don’t worry if your budget isn’t perfect at first. It sometimes takes a month or two to get it to a place that it works for you. The important thing is that you start and continue to work with it


STEP TWO: SNOWBALL THAT DEBT!

  • List all your debts (except the house) from smallest to largest.
  • List the minimum payment for each.
  • Pay the minimum payment on all of the debts EXCEPT for the smallest one. Put as much money as you can on the smallest!
  • Once the smallest debt is paid off, add what you were paying on that one to the next smallest.
  • Each time you pay off a debt, you keep snowballing those payments to the next one.
  • Pay off all your debts and get FREE!

FOR EXAMPLE: If you pay the minimum on each of your debts, and add an extra $100 to the smallest debt, you could pay it off in a couple months. Then you can attack the second credit card with the minimum you have been paying on it, plus all the money you were paying on your other card. So that one will now be paid off in several months. You continue to do this each time, snowballing all the money you were paying on the previous cards into the next one, and before you know it , you can say good-bye to debt!