New memory verse added!

Memory verse: Everything in the heavens and earth is yours, O Lord, and this is your kingdom. We adore you as being in control of everything.  1 Chronicles 29:11

Memory verse 2: “Just as the rich rule the poor, so the borrower is servant to the lender” Proverbs 22:7

Definition of debt: ‘money which one person is obligated to pay to another’.

Debt has become a very normal way of life. The average family spends more than it makes each year. Think about this, everyday we go to our jobs or business, and a large portion of the time and effort we put in is to pay for something we already have in our possession. Think about the memory verse above, “borrower is servant to the lender..”  some versions say “slave to the lender”.  When we hear the word “slave”, a lot of very negative images appear in our minds like people in chains, whipped and worked to the bone. But have you ever considered yourself a slave? That’s what the bible calls us if we are indebted to another person or business. We work a lot of hours everyday just to hand over to the bank, credit card companies, car dealerships, other people etc…  And we have to, or those nice things that are not completely paid for yet could get taken away. We are slaves to the lenders.

“owe no man anything…” KJV   “Keep out of debt and owe no man anything”  Amplied   “Owe nothing to anyone”  NAS   Romans 13:8a

Debt is highly discouraged in the bible for obvious reasons. We will be subject to the lender. We may pay high interest rates. Its a burden. Debt can be stressful on relationships. And let’s face it, don’t you get sick of paying those same high payments for that new car 5 years later? But let’s be clear, the bible never calls debt a sin, but rather just some sound advice. It is discouraged because God knows what’s the absolute best for His children.

“You were bought at a price; do not become slaves of human beings” 1Cor. 7:23

I can hear some of you yelling at me right now “if i’m not supposed to go in debt, how will i ever buy a house? That’s impossible!”  That is an excellent question. Let’s look at what the biblical financial experts will call acceptable debt (in man’s opinion, not the bible’s). Acceptable to a degree.

In the opinion of the experts, it is permissible to borrow for a home mortgage, your vocation or your business.

However, there are 3 criteria that must be met:

a. the item purchased produces an income or has the potential to appreciate.

b. the value of the item equals or exceeds the amount owed against it

c. the debt is not so high that the repayment puts undue strain on the budget

Just to be clear, all 3 of these criteria must be met and the eventual goal should be to eliminate this debt completely.

Ok, time for some practical homework. In order to obtain any goals, and in this case financial goals, you cannot start unless you have an idea of where you currently are at. Just like a GPS. It can’t lead you anywhere without knowing the starting point. A big mistake people make in their financial planning is failing to know their actual situation. Fill out the personal financial statement by clicking the link below. This will be your starting point.

personal-financial-statement

 

Prayer: Jesus thank you for being our GPS. You are constantly leading and pointing heavenward. You guide me and help me through the rough patches. Thank you that you always want what’s best for us. Show us how to not be slaves, how to get out of debt. Teach me Lord to be content with what I have and patient with purchases. Thank you in Jesus name, amen.