In God We Trust

Teaching You How to Get OUT of Debt and Live Debt-Free

Archive for the ‘Attitude’ Category

Sep
9

Many of us (not me, unfortunately) make a day productive by using a To-Do list in one form or another. Here is a To-Do list from around the Internet that builds character…

“Never borrow from the future. If you worry about what may happen tomorrow and it doesn’t happen, you have worried in vain. Even if it does happen, you have to worry twice.”

1. Pray
2. Go to bed on time.
3. Get up on time so you can start the day un-rushed.
4. Say “No” to projects that won’t fit into your time schedule, or that will compromise your    mental health.
5. Delegate tasks to capable others.

6. Simplify and de-clutter your life.
7. Less is more. (Although one is often not enough, two are often too many.)
8. Allow extra time to do things and to get to places.
9. Pace yourself. Spread out big changes and difficult projects over time; don’t lump the hard things all together.
10. Take one day at a time.

11. Separate worries from concerns. If a situation is a concern, find out what God would have you do and let go of the anxiety. If you can’t do anything about a situation, forget it.
12. Live within your budget; don’t use credit cards for ordinary purchases.
13. Have backups; an extra car key in your wallet, an extra house key buried in the garden, extra stamps, etc.
14. K.M.S. (Keep Mouth Shut). This single piece of advice can prevent an enormous amount of trouble.
15. Do something for the Kid in You every day.

16. Carry a Bible with you to read while waiting in line.
17. Get enough rest
18. Eat right.
19 Get organized so everything has its place.
20. Listen to a tape while driving that can help improve your quality of life.

21. Write down thoughts and inspirations.
22. Every day, find time to be alone.
23. Having problems? Talk to God on the spot. Try to nip small problems in the bud. Don’t wait until it’s time to go to bed to try and pray.
24. Make friends with Godly people.
25. Keep a folder of favorite scriptures on hand.

26. Remember that the shortest bridge between despair and hope is often a good ‘Thank you, Jesus” .
27. Laugh.
28. Laugh some more!
29. Take your work seriously, but not yourself at all.
30. Develop a forgiving attitude (most people are doing the best they can).

31. Be kind to unkind people (they probably need it the most)
32. Sit on your ego
33. Talk less; listen more.
34. Slow down.
35. Remind yourself that you are not the general manager of the universe.

36. Every night before bed, think of one thing you’re grateful for that you’ve never been grateful for before.

GOD HAS A WAY OF TURNING THINGS AROUND FOR YOU.

‘If God is for us, who can be against us?’ (Romans 8:31)

JohnL

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Apr
11

When you are unemployed, it is far more important to manage your financial life than ever before. You need to preserve what little income you have. You need to severely monitor and control your cash-outflows. You need to continue normal life functions. You need to find another job. This lesson addresses financial management and how you should proceed with your financial life.

There are Four Principles of Financial Management that you need to know about. These principles apply at any time in your financial life. In fact, if you had followed these Four Principles, your financial situation would be pretty easy to handle. But, that’s enough “I told you so…” Start embracing the Principles, now, and you’ll make it through this current unemployment challenge, and you’ll be on the way towards weathering any future unemployment bouts, as well.

The Four Principles

  • Honor God with Your Life
  • Spend Less than You Earn
  • Avoid Debt
  • Provide for the Future

Honor God With Your Life

We all want to please God. We all try to live a good life. But God wants more… He wants your every waking minute. God asks you to deny yourself and follow Him. He asks that you help other people. He asks that you be a good steward of all the assets entrusted to you, for what you have is not yours, but His.

Take a moment to reflect on what you have typically spent your money on. How much of what you buy makes you look good, or feel good, or sound good? How many of your expenditures glorify you? How many of them glorify God? How much of what you spend helps other people?

Chances are that you have been spending at least 98% of your income on you. Chances are also good that you have been spending more than 100% on you. Most families spend more than they earn as seen in ever-increasing debt-loads. Their bills get bigger with time, not smaller.

Now is the time to re-balance your financial life. If you are not giving regularly to your local church, then you need to begin doing that, today. You don’t need to begin by tithing (giving 10% of your income) but you need to earmark something for God each week. You need to do this before you spend it on other things. You won’t notice the absence.

“But John, we need our money to live on…”

I assure you that by indicating your submission to God by giving to your local church, God will take care of your needs in ways you can’t conceive of. God is not an accountant – But He is the creator, and He loves you.

Measure your current and future purchases using this prayer: “Lord, does this purchase glorify you? Should I be buying this?” Listen for the answer. If He says, “Yes.” then you’d better buy it! But if He says, “No.” or is silent, then you had probably better pass on this purchase.

This doesn’t mean that you can’t buy anything. It just means that you need to be more thoughtful when you shop. Remember that you are to be a good steward. This means making good decisions about how to take care of what isn’t yours. Don’t spend extravagantly or to gratify your selfish desires. If you don’t need it, don’t buy it.

Spend Less than You Earn

This leads to the second principle. If you spend less than you earn, then you will have a surplus. The surplus will accumulate over time to provide for your future. This is a key discipline you need now more than ever. You need to cut back on your spending to better match your new income. You need to do this in spite of your optimism about getting a new job, because you need to prepare your life for an extended unemployment span. It will probably be anywhere from three to twenty-four months before you become re-employed in a satisfactory position. You need to be financially able to weather this time. You do this by becoming disciplined at Spending Less than You Earn.

This means that you need to examine all areas of your expenditures and make adjustments, and you need to do it immediately. You need to keep track of every dime that comes in to your household, and you need to track where and how it exits. You begin by constructing a Spending Plan based on your current situation, and your future expectations. The Spending Plan identifies all areas in your life where money gets spent. You examine each of the areas and then decide, today, how you will spend in this area for the future. This is stewardship.

How can you cut expenses? They are so locked in… Actually, they aren’t. Every one of your current expenses is optional. You need to have this attitude when you examine your expenditures. You do need to spend something on housing, but if necessary, you can move to a less expensive location. The same can be said about transportation – you can trade down to a less expensive car or two. Your insurance expenditures can be reduced. Your utilities, food, clothing, entertainment – every expense you have – can be reduced. But you choose what and how to reduce them.

Here are some examples. Turn off all the lights in rooms you aren’t occupying. Turn the temperature down in winter or up in summer, and dress accordingly. Limit the number of trips to McDonalds each week. Walk or ride bikes for errands (and exercise). Only shop at the grocery store with a list. Include sale items, and coupons. Eliminate or stretch out hair appointments. Cancel subscriptions and memberships, certainly as they come up for renewal. Return recent purchases for credit. See the list for more examples.

Avoid Debt

This means to avoid taking on any new debt. Ordinarily, this principle advises that you get out of debt as quickly as possible. Unemployment means that the avoidance is primary. Getting out of debt is attractive, but not the priority.

In your attempt to keep cash-flow in balance, you may be tempted to add charges to your various credit cards or even take out a home equity loan to tide you over. This is a bad decision. You may satisfy a short-term desire, but you jeopardize your long-term financial viability. You are far better off cutting back on expense than you are trying to keep up appearances by charging. Avoid debt.

However, don’t cut up your credit cards. You may, indeed, need to use them from time to time. It is important to keep that available balance available. Instead, put them in a drawer for safe keeping. Don’t take them out for a day of shopping. Stick to the list.

What you should do with your credit cards, however, is to try to negotiate down your current interest rate – without trading cards. Most companies will meet your request for a lower limit if you ask them. The reason is that they want to keep you as a customer, and know that you can move to a different card company. Go ahead, call them, and ask. The worst they can say is, “No.” Then you can take steps to move to a different credit card company.

You should also stay current on your credit card bills. Late-payment fees will drain your cash faster than you can afford. Send those checks off in plenty of time to wend their way through the mail to the payment address. Be sure you aren’t bouncing those checks, too. You’ll get a double-whammy if you do – once from the bank, and a second one from the merchant. Some merchants even send the checks back for a second attempt, so it could be worse.

Provide for the Future

If you had done this, your unemployment adventure would be less stressful. You would ideally be living off your six months of living expenses set-aside at this time, not scrambling to try and make ends meet. This set-aside gives you time to consider your changes or circumstances. It allows you to discuss and reject inappropriate employment offers. It lets you examine your options in far greater detail. Even now, you should be setting aside a small amount for just-in-case needs. When you get re-employed, make this fund a priority.

In the meantime, providing for the future while unemployed means to re-examine your future-related expenses and take appropriate action. Look at your insurance, taxes, and retirement fund situations, and act.

For example, you might have a 401k retirement fund amount that looks awfully attractive right about now. But like getting farther into debt, tapping into this fund should be an absolutely last resort action. When you take early withdrawals from your 401k, or 403c, or IRA accounts, you pay an early withdrawal penalty in addition to any owed taxes. This can take up to 50% of the value of your account. This isn’t good stewardship. It is Ok to think about temporarily decreasing your spouse’s contribution amount, but don’t eliminate it. Keep something going towards the retirement fund.

Your insurance needs don’t automatically continue at the same level as before. Your previous employer owes you COBRA coverage for 18 months, but you have to pay for it. The employer’s plan may be far more than you actually need. If you or your family are reasonably healthy, then a plan with very inexpensive office calls and very cheap drugs may cost you more in premiums than you would ever make up in savings. On the other hand, if you have serious pre-existing conditions, don’t jeopardize future coverage by dropping coverage now. You have to make those good decisions, but you should examine each and every insurance policy and determine if you need it or how much you can afford to do without. Remember. Having insurance does not prevent occurrences, and not having it doesn’t cause something to happen. Insurance lessens the financial impact of an event. Balance the cost with the benefit. This is good stewardship.

Finally, consider taxes. If your spouse is currently employed, consider upping the number of W-4 exemptions being claimed. Use the worksheet available from the IRS or your employer and calculate how many exemptions you should claim for withholding purposes. You can make a change at any time, and by increasing the number of withholdings claimed, the take-home pay is increased a small amount. Certainly avoid claiming zero exemptions as this only pads the government’s treasury with no benefit to you.

You need to increase your cash inflows as much as possible, and you need to decrease your cash outflows as much as possible. You provide for the future by making good choices.

Your Action Plan

Start this very day gaining control of your financial life. Commit yourself to living the Four Principles beginning now.

Give something to the Lord, today. Examine your lifestyle in light of Honoring God. Help someone else get through life. Spend time with the Lord – He will give you comfort and wisdom, but you have to ask.

Build a Spending Plan, immediately, and make spending decisions about your lifestyle to bring your outgo to below your income. Watch every expenditure and take them all captive to the Spending Plan.

Keep your credit cards – just don’t use them. Stay current on your credit card bills. Negotiate a lower rate. Don’t take out consolidation or home equity loans except as a very last resort.

Examine the need for continued insurance. Re-calculate your tax withholdings. Stay away from your retirement accounts. Put a bit aside for unexpected expenses – don’t use the credit cards.

Conclusion

You can weather this set-back. You will survive. You may not emerge with the same lifestyle or earning power, but that isn’t the end of the world. Use this opportunity to re-establish a strong relationship with God, your Spouse, your Family, and your Friends. Become a better person by being a better steward.

Jan
7

by Sandi

Actually, John was talking to me a few days ago and said, "Eventually, stuff becomes junk."  I’ve been giving a lot of thought to those words over the past few days, and it is such a true statement.  Not willing to just mull it over myself, I have speculated with others. and no matter what stuff you have, in the end it becomes junk.  My friend pointed out that things like family heirlooms, photographs, and great paintings never become junk.  The truth is, that even these precious items will eventually reach someone that sees no value in them and simply disposes of them. 

Think about when your great aunt somebody passed away, and her great nieces and nephews cleared away the accumulations of her life.  Photo albums, clothing, and an entire household of collectibles and possessions were offered up in an estate sale.  What was left was donated to charity and hauled to the dump.  Stuff becomes junk. 

I, myself, have a lot of stuff that is still brand new, and is already becoming junk.  I have a bolt of upholstery fabric that I purchased about 15 years ago to re-cover a favorite couch.  I didn’t get around to it right away.  Even though the fabric is brand new, and the highest quality I could afford, the couch it was intended for is long gone, and the fabric is so out of fashion.  My fabric is very close to becoming junk.  In fact, it already is, but I just haven’t admitted it yet.

I have other stuff rapidly turning to junk.  A pretty dress bought for a Christmas party years ago, and now a size too small.  Then there are some shoes that I loved, but they always hurt my feet, so I haven’t worn them in at least a year. 

I have craft supplies to make things that no one wants, and tubes of fabric paints that have dried out.  Clothes no longer in fashion.  Decorative pillows that are faded or the wrong color.  Yard and garden accessories and tools rusting away. 

Once, all these things were things I wanted so badly that I traded money for.  In some cases, I put the purchases on my credit card.  At the time it didn’t even cross my mind that I was just buying stuff.  What if I had just given a few minutes thought to all those things I purchased.  Looked forward a bit to try to figure out if that stuff was going to become junk before I even got a chance to enjoy it. 

What if you gave a bit of thought to your purchases.  You are purchasing stuff that eventually become junk.  Is this junk something you are willing to get into debt to own?  Try this for a few weeks or months.  Before you purchase something, try to figure out how long it will take before it becomes junk.  Then ask yourself if you really want it?  I’m betting that you will develop a whole new attitude about buying stuff.  And, if you buy less stuff, you will be able to accelerate getting yourself out of debt and saving for things that are really important.  Things like a college education for yourself or your children.  Things like donating money to help animals or people in need.  Things like a home for your family or a vacation that your children will never forget.

Stuff becomes junk.