Key #6 To Successful Money Managing

Key #6: Avoid debt when at all possible.

This is something that could be considered very counter-cultural. We live in a society that tells us we deserve more and better things, whether we can afford them or not. What is great (or maybe not so great) about our society is that you don't have to actually be able to afford something in order to purchase it. Credit cards, bank loans, and other lending tools allows us to bring things home and pay (or attempt to pay) for them later.

The Bible gives a great perspective on debt in Proverbs 22:7:

Just as the rich rule the poor, so the borrower is servant to the lender.

And also here in Romans 13:8:

Owe nothing to anyone—except for your obligation to love one another. If you love your neighbor, you will fulfill the requirements of God’s law.

When we borrow money we give up some of our financial freedom. Think about it...if I'm debt free I am able to spend each penny of my paycheck as I see fit (hopefully following God's leading as I do). If I have a $500 monthly debt payment each month, I no longer have any freedom with that part of my money. The more debt you take on, the less freedom you have. This is why the Bible is right on when it says 'the borrower is servant to the lender.'

Have you ever been in a church service where a missionary or someone from a non-profit organization was raising money to help support their work? Have you ever truly wanted to give to the cause but not been able to because of previous financial commitments (read: debt)? My hope is that whenever God lays it on my heart to give money away I will be free to respond in obedience.

I'm attempting to do that by keep to a twofold plan: 1) Planning ahead and save up for large purchases (both expected and unexpected) and 2) Refraining from purchasing things I don't need and can't pay cash for.


*Disclaimer*
There are times in life when going into debt is usually necessary. Paying for college and buying a house are the two most common situations. That being said, it is possible to do both with minimal debt. Both are situations where the item being paid for is a long-term investment that will hopefully last a lifetime. The key is to keep necessary debt as small as possible and avoid all other debt whenever you can.


View Key #1 here.
View Key #2 here.
View Key #3 here.
View Key #4 here.
View Key #5 here.