B is for Bondage. Nothing ties up your income and locks up your dreams more than the bondage of debt. If you want to turn your finances around, escaping those chains must be a priority.
Truths about debt:
- Debt is a product being sold. Credit is the most aggressively marketed product in the country. Remember that “Life takes VISA” is an ad slogan, not a fact.
- Debt limits options. Lenders must be paid. Any job that covers all of those bills is a requirement, no matter what. And an underwater mortgage can turn a home into a prison.
- Debt increases risk. Being able to pay today doesn’t guarantee tomorrow. Failure to repay leads to threats and legal action, and can result in losses of property and wages.
How to escape:
- Get intense. You can’t passively drift out of debt. Escaping requires passion. It’s time to get angry. It’s time to get focused.
- Get intentional. You have to drive every dollar you bring in towards a purpose. Make a plan for your income. Write it down.
- Stop borrowing. No more new debt. Draw the line here, and get ready to fight.
What do you think? Are you living without debt? How did you escape? What should be my word for Q? Let me know in the comments below!
This week, we’re beginning a new session of Financial Peace University at one of our local churches. We already have about 30 people signed up, and I’m personally hoping for a lot to happen over the next couple of months. I’ve got a few reasons to be excited.
- Dave Ramsey and his team have recently reworked the course. The last time they updated was before the housing crash, so I’m expecting some new information in regards to that. There are so many people hurting in this area because of their out of control house payments, and I hope that we can really offer a few people some help.
- We have a few families attending. Parents are taking the time to make sure that their older children have learned the basics of handling money before they go out into the world. I love that.
- The course is now nine weeks instead of thirteen. I’m going to miss some of the material that’s been cut, but a shorter time commitment probably means more class retention, which is a good thing. Also, we might be able to fit in an additional session every year, and that would be awesome.
Here are the nine lessons:
- Super Saving – Why you should save money, and why you need to start now.
- Relating With Money – Why families must work together to achieve financial goals.
- Cash Flow Planning – How to develop a monthly budget that really works.
- Dumping Debt – What myths we believe about debt, and how to become debt free.
- Buyer Beware – Why marketing is so powerful, and how to reduce it’s influence.
- The Role of Insurance – What insurance you need to have, and what to avoid.
- Retirement and College Planning – How to plan for the future.
- Real Estate and Mortgages – How to buy or sell a home.
- The Great Misunderstanding – Why you should live a generous life.
If you’ve never taken Financial Peace University, I highly recommend it. It’s a great first step for families who are struggling with money issues and don’t know where to start. If you’re in the Tucson area, and you’re interested in joining a class, let me know. Send me an email and I’ll see if I can hook you up.
Question: Have you taken FPU? What was your experience? What was the most important thing you learned? How did it change your life and your finances?