Making goals can be a good thing and can help us stay focused and on track on the things that matter most. According to an article from Statista, the 3 top resolutions for 2018 were eating better, exercising, and saving more money. All of these are great resolutions and worth working towards.
Eating better and exercising regularly are very common and most people can agree on how to do each. Simply put, eat less and get moving. However, when it comes to money, it seems people have all kinds of ideas of what’s best. When it comes to debt, professionals say there is good debt and there is bad debt.
The idea of good debt is you can use the money you would have spent on paying off debt and invest it and make more money then you lose on having debt. Bad debt is just that: Bad. No matter how you spin it, this kind of debt costs you. But as Dave Ramsey says, don’t be normal. If you are going to make resolutions then make the resolution to have no debt.
I have heard many times how having some debt is good. If you wish to be a slave, then get in debt and stay, but if you wish to be different, if you wish to be free, then make a plan to have no debt.
The rich rule over the poor, and the borrower is a slave to the lender. Proverbs 22:7
Let’s be clear. Debt is bad. When you have debt, you have a partner in your finances. You invite in a stranger into your life. You have a partner that has a say in how you deal with your family’s finances. This partner dictates how you spend your money and when you spend it. This partner doesn’t care about any other part of your life. If your family falls on hard times, this partner still demands the money owed to him, her, them or it. These debt partners have no empathy and no compassion and would rather get paid and see you on the street than to help you when you need it most. In essence, debt makes us a slave.
With that being said, there are things that happen in life that cause us to go into debt whether we want to or not. Medical issues are a reason for many. Loss of a job or family issues is another. Debt is sometimes unavoidable but that doesn’t mean we shouldn’t do whatever it takes to get out. We need to be passionate and we need to be aggressive in getting out.
Imagine what it would be like to be debt free. How much money would you have after your paycheck? How easy would it be to change jobs? How easy would it be to take a job that pays a little less but offers a lot less stress? How easy would it be to move if you need to? How easy would it be to be generous? How easy would it be to help others? How different would this world be if everyone really tried to live debt free?
When we get out of debt we are freeing ourselves. We free ourselves to do whatever we want, whenever we want with what God has given us.
When it comes to getting out of debt, the first step you need to do is pray.
When it comes to getting out of debt, the first step you need to do is pray. Pray for God’s guidance and pray for the strength and endurance to persevere. Prayer helps us focus and when our focus is on God and you live your life according to God’s Word we can do what he calls us to do.
The next steps are:
Save up a small sum of money for an emergency fund. Usually $1,000
PLAN & Attack
Find your smallest debt and figure out how you can pay it off and attack it. When done, find your next target and keep on the offensive.
Whatever plan you make to get rid of debt, it will change because life changes. Adjust the plan and continue the attack. Don’t give up.
Enjoy the victories, those times we pay off a debt or meet a goal. Too many times we don’t celebrate. It’s okay. Go have some fun and then get back to it.
Getting out of debt and personal finance sites