Proverbs 22:7 says “The poor are always ruled over by the rich, so don’t borrow and put yourself under their power”. (Message Version) Another version reads…..”and the lender is slave to the borrower.” (NIV)
I didn’t want to use this scripture but it was the closest thing to understanding the bondage of debt. It paints a picture of what happens once we accept money from a lender. Most of us are so focused on the thing we want, that we don’t stop and count the cost. The point I want to drive home in this blog is the fact that whoever you’ve borrowed money from (e.g., Visa, Mastercard, American Express, Salley Mae, etc.) essentially has POWER over you and to some level is your master. You may think this is an exaggeration but consider this... You get up everyday and work hard to pay off a car note, house note, school loan, credit card bills, etc. and if you don’t pay it back there are serious consequences. Either they’ll take the product back if you don’t pay for it or they’ll ruin your credit. So who really has the power? They do. I understand that we may have to get a loan to buy a car, go to school and get a home. However, why take 30 years to pay off the home when we can put a plan together to pay it off sooner! Or why not start saving more cash so we can pay for large purchases in cash?
There are many people I know that have jobs or careers that they don’t even enjoy but because of the debt they are tied to it. I seriously want you to imagine your life without owing anyone a dime. The problem is we have been programmed to think that debt is inevitable so most, not all, can’t even fathom what being debt free looks like. Just imagine, all of your money going to savings. Or just picture being able to have the freedom to walk away from a career you no longer enjoy in order to take a risk pursuing your passion! Imagine being able to give more to others in need!
This week, I want you to meditate for 15 minutes at least 3 days on what it would be like to be debt free. Write a list all the things you would do if you had NO DEBT. I also want you to take a 3 x 5 note card and write DEBT FREE on it and post it somewhere you can see it on a daily basis as a constant reminder that you can, and you will be debt free!
Thursday, December 23, 2010
Tuesday, December 14, 2010
Taking the first step to freedom!
The last blog I wrote, someone wanted to know my recommendations for financial advisors, books, mentors, etc. It was an excellent question because it's really the first place to start. So, for this blog I wanted to take a step back and give advice on what to do even before you begin the budget. The first thing we must all have in order to achieve anything is a sincere desire and passion for that which we are pursuing. The next important step is to be open to seeking out individuals who have a greater understanding in this area than we do, in other words, get a mentor.
A mentor doesn’t even have to be someone you meet with in person or even know personally. It could even be an author whose work and accomplishments you respect. One of the experts that I have personally sought advice from is George Thompson of Thompson Wealth Management in Culver City, CA. I had the opportunity to serve with him in a ministerial capacity and gained incredible insight on the importance of being debt free. He truly is the first person that really opened my eyes to the importance of getting rid of debt.
The first book I would recommend everyone read is “The Power to Prosper” by Michelle Singletary. I love this book because it covers everything. Seriously, she leaves no stone unturned. She helps you get to the root of the problem. This book is only for those who are serious. You will certainly be challenged but you will also be empowered. This book is based on the biblical principles but even if you are not a Christian, the principles work and will guide you into a life of prosperity. I would then recommend “Financial Peace University” by Dave Ramsey. Financial Peace University is even more in depth but worth every moment of your time and money. Both require serious commitments and really are for people who are fed up with being deceived and controlled by the world’s system.
If you have other books that you have been meaning to read, by all means do so but this week, I would challenge you to buy a book on financial empowerment. Do not hesitate. We are moving into a new year and what better time is there to start getting your finances in order? Let’s make it a priority for 2011!
A mentor doesn’t even have to be someone you meet with in person or even know personally. It could even be an author whose work and accomplishments you respect. One of the experts that I have personally sought advice from is George Thompson of Thompson Wealth Management in Culver City, CA. I had the opportunity to serve with him in a ministerial capacity and gained incredible insight on the importance of being debt free. He truly is the first person that really opened my eyes to the importance of getting rid of debt.
The first book I would recommend everyone read is “The Power to Prosper” by Michelle Singletary. I love this book because it covers everything. Seriously, she leaves no stone unturned. She helps you get to the root of the problem. This book is only for those who are serious. You will certainly be challenged but you will also be empowered. This book is based on the biblical principles but even if you are not a Christian, the principles work and will guide you into a life of prosperity. I would then recommend “Financial Peace University” by Dave Ramsey. Financial Peace University is even more in depth but worth every moment of your time and money. Both require serious commitments and really are for people who are fed up with being deceived and controlled by the world’s system.
If you have other books that you have been meaning to read, by all means do so but this week, I would challenge you to buy a book on financial empowerment. Do not hesitate. We are moving into a new year and what better time is there to start getting your finances in order? Let’s make it a priority for 2011!
Monday, November 15, 2010
"The Dreaded Budget"
If I could be financially successful without a budget, I'd get rid of it in a minute and never say that "B word" again! Unfortunately, that's not possible. Every financial expert will tell you this is one of the first things we must tackle. Tedious as it is, it's the roadmap we need to get from point A to point B. Even if you are good with money, you still need a plan and your budget is the key component of that plan. If you are already successful financially, it will enhance your success. For the record, I don't know anyone that is financially well off that doesn't have a budget. I see it as the mechanism that helps create the big picture.
I remember starting a budget and not sticking to it and at times just completely avoiding it all together. I know I avoided it because I really didn't want to focus on the necessary work I needed to do. To be honest, it was just too difficult for me to acknowledge that I had not had control over my money but my money was controlling me. One day, I asked myself that famous Dr. Phil question, "How's that working for you?" The answer was, it wasn't. Yet, I knew that if I really wanted to be completely debt free and financially well off, I had to begin to do the dirty work.
In March of 2009, I finally decided to sit down with a financial advisor and after that meeting I was so stressed and frustrated that I said to myself this has got to change. We looked at all my income coming in and going out and it was very scary. Even with a great job, I still had not managed my money effectively. Because I made the decision to look at it, I am now in a much better situation and should be completely debt free by June 2011. When I met with her, I couldn't see the light at the end of the tunnel, now I am staring right at it. That budget she and I created freed me and I began to continue to make more and more financial sacrifices. This from a woman who could say "no" to anything. Especially a great pair of shoes!
The great thing about a budget is now with technology, there are some awesome tools out there that can help you. I love www.mint.com. Mint.com allows you to see all your financial information in one place. You can set goals for buying a home, planning trips, etc. and see exactly when you'll be debt free(if you have debt). What I love most is you can set budgets for each category and it will notify when you have exceeded the budget. That means it'll hold you accountable;-)
Here are some benefits of having a budget:
1. It tells you what is coming in and what is going out.
2. It helps you make the necessary adjustments.
3. It forces you to look at where you are right now versus where you want to be in the future.
4. It gives you control and discipline.
5. It helps you to tell your money where to go.
Finally, creating a budget is great but without action to back it up, you will not succeed. What can you do today? Try by using www.mint.com or a friend to hold you accountable so you can create a budget and stick to it. Once I got serious about my commitment to living a different life financially, I cut my expenses over 50%. Next week I'll share the areas I immediately cut cost.
I remember starting a budget and not sticking to it and at times just completely avoiding it all together. I know I avoided it because I really didn't want to focus on the necessary work I needed to do. To be honest, it was just too difficult for me to acknowledge that I had not had control over my money but my money was controlling me. One day, I asked myself that famous Dr. Phil question, "How's that working for you?" The answer was, it wasn't. Yet, I knew that if I really wanted to be completely debt free and financially well off, I had to begin to do the dirty work.
In March of 2009, I finally decided to sit down with a financial advisor and after that meeting I was so stressed and frustrated that I said to myself this has got to change. We looked at all my income coming in and going out and it was very scary. Even with a great job, I still had not managed my money effectively. Because I made the decision to look at it, I am now in a much better situation and should be completely debt free by June 2011. When I met with her, I couldn't see the light at the end of the tunnel, now I am staring right at it. That budget she and I created freed me and I began to continue to make more and more financial sacrifices. This from a woman who could say "no" to anything. Especially a great pair of shoes!
The great thing about a budget is now with technology, there are some awesome tools out there that can help you. I love www.mint.com. Mint.com allows you to see all your financial information in one place. You can set goals for buying a home, planning trips, etc. and see exactly when you'll be debt free(if you have debt). What I love most is you can set budgets for each category and it will notify when you have exceeded the budget. That means it'll hold you accountable;-)
Here are some benefits of having a budget:
1. It tells you what is coming in and what is going out.
2. It helps you make the necessary adjustments.
3. It forces you to look at where you are right now versus where you want to be in the future.
4. It gives you control and discipline.
5. It helps you to tell your money where to go.
Finally, creating a budget is great but without action to back it up, you will not succeed. What can you do today? Try by using www.mint.com or a friend to hold you accountable so you can create a budget and stick to it. Once I got serious about my commitment to living a different life financially, I cut my expenses over 50%. Next week I'll share the areas I immediately cut cost.
Sunday, October 17, 2010
Releasing the shame!
"Brethren, I do not count myself to have apprehended; but one thing I do, forgetting those things which are behind and reaching forward to those things which are ahead," (Philippians 3:13 NKJV)
Before I continue with any further blogs, I first want to deal with the issue of shame from our past mistakes. It was shame that took me over a year to start this blog. Shame paralyzed me and in the process, kept me from being a blessing to others. I kept putting it off and putting it off and putting it off. I told myself that I'll start blogging once the debt was completely paid off. And then a good friend told me to stop waiting. That is wasn't about ME. That is why I referenced the above scripture to encourage all of us on this journey. The past is the past! Most of the poor financial choices I made were years ago and because I didn't know any better.
I know I am not alone because I remember as I worked on the Stewardship Committee at my church , all the people in need during the housing crisis but many would not come forward because of shame. Most people could have gotten help sooner but because of the shame, didn't get help. They didn't want their peers to know they had fallen behind on their house note and needed help.
In order for us all to grow during this process, your honesty is needed as well as mine. Once we stop focusing on ourselves, we begin to bless others by sharing our story. Our past is only to be used to help others avoid our mistakes. So, as you comment, don't be ashamed to share your story because we are now moving FORWARD!
I have been blessed to meet Patrick Haas, who will be featured and provide tips to us on how to save, etc. Patrick has had 30 years of experience handling his money responsibly so I want him to bless us with his knowledge.
Kristine Lynn
Before I continue with any further blogs, I first want to deal with the issue of shame from our past mistakes. It was shame that took me over a year to start this blog. Shame paralyzed me and in the process, kept me from being a blessing to others. I kept putting it off and putting it off and putting it off. I told myself that I'll start blogging once the debt was completely paid off. And then a good friend told me to stop waiting. That is wasn't about ME. That is why I referenced the above scripture to encourage all of us on this journey. The past is the past! Most of the poor financial choices I made were years ago and because I didn't know any better.
I know I am not alone because I remember as I worked on the Stewardship Committee at my church , all the people in need during the housing crisis but many would not come forward because of shame. Most people could have gotten help sooner but because of the shame, didn't get help. They didn't want their peers to know they had fallen behind on their house note and needed help.
In order for us all to grow during this process, your honesty is needed as well as mine. Once we stop focusing on ourselves, we begin to bless others by sharing our story. Our past is only to be used to help others avoid our mistakes. So, as you comment, don't be ashamed to share your story because we are now moving FORWARD!
I have been blessed to meet Patrick Haas, who will be featured and provide tips to us on how to save, etc. Patrick has had 30 years of experience handling his money responsibly so I want him to bless us with his knowledge.
Kristine Lynn
Saturday, October 9, 2010
"I hate debt"
About 2 years ago I came to grips with the amount of debt I had accumulated over the years. I had spent most of my life buying, shopping and spending like there was no tomorrow and like most americans, it caught up with me. I could NOT believe I became one of the statistics. You know, the ones who bought into the lies and deceit. I believed I had to have things to define me. It was a gradual and frustrating process understanding the mess I had created but as I began to learn more about money and wealth, I literally began to HATE debt and started making greater sacrifices to speed up the process of getting out of the mounds of debt I had created.
I am writing this blog because I don't want to take this journey alone and I know there are others out there who will commit to taking this walk with me. We will encourage one another, hold each other accountable, share our victories and educate one another as we learn how to become wealthy and completely debt free. Each week, I'll discuss where I am, what I have learned so far. I'll provide recommendations on books to read, etc. If you or someone you know is in the process of becoming debt free then please join me on this journey.
And by the way, last week I paid off a credit card with a $3500 balance. How about you?
I am writing this blog because I don't want to take this journey alone and I know there are others out there who will commit to taking this walk with me. We will encourage one another, hold each other accountable, share our victories and educate one another as we learn how to become wealthy and completely debt free. Each week, I'll discuss where I am, what I have learned so far. I'll provide recommendations on books to read, etc. If you or someone you know is in the process of becoming debt free then please join me on this journey.
And by the way, last week I paid off a credit card with a $3500 balance. How about you?
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