May 16, 2014

Financial Freedom


I attended a finance class with my husband about a month ago.  It was held at our church for three Sundays.  Most of the information we were already aware of -  saving, budgeting, etc.  I’ll have to admit, both my husband and I were not good with our finances during the first few years of our marriage – heck even now and then we mess up. We became more aware of what we needed to do and work on when we decided to purchase a house.  About three years ago we decided we wanted to take the next step of becoming home owners.  As most of you are aware, your credit is key when making these types of purchases.  My husband and I had a low credit score due to the fact that we didn’t have credit open in our names.  We were advised to open a couple of credit cards, make some purchases and pay them on time to help our credit score grow.  We did that and later found ourselves holding 4 maxed out credit cards.  Needless to say, the credit limits were not high, so we weren’t sitting in a pile of thousands of dollars, but we were in debt.  It’s so easy to say, I’ll pay it off -  BUT it’s easier said than done.  Interest charges can be killer.  Lesson learned?  Well, that year we focused on our improving our credit score and luckily when it was time to purchase a house, things ran smoothly.  We did have to pay 90% of our credit debt upfront, which was relieving, but we should have just cut those credit cards up at that time, BUT we didn’t.  With the house, came expenses.  We needed more furniture, appliances needed to be updated, there was just so much that was needed.  Best Buy, Home Depot cards were opened, a credit line at Ashley’s Furniture was opened and immediately used.  We found ourselves with new things, but also found ourselves with the debt that came along with it. 

My dad had always emphasized the importance of money management, saving and had actually paid off over 50 grand of debt within a matter of 5 years and managed to pay off his home early during that time as well.  Because of that commitment and discipline, my parents are living comfortably now that my mother has retired.  Even though I knew years ago that my parents had accomplished this, it did not resonate with me and my debt until about a year ago.  If some of you remember, I wrote a blog post in August of last year. (You can find it here.) I had read the book my dad gave me by Dave Ramsey.  That along with other things, seeing my dad pay his truck off in cash, reading “My Purpose Driven Life”  and learning the fundamentals of money management, giving back and tithing - all these things collided and it brought my husband and I to begin paying off debt, which we did, unfortunately somewhere along the lines of birthdays and holidays, it came to a halt. 

As I mentioned in the beginning of this post, we attended a finance class at church which brought us on this financial peace journey once again. Hearing first hand testimony from the volunteers who were teaching the class was reinvigorating, encouraging and it trigged something inside of us that needed to be awakened. I received some great tools from the class that included learning how to budget.  A cool site that was referenced was Mint.com, which is an online budgeting website that does all the work of organizing and categorizing your spending.  It’s so simple, all you do is plug in all your accounts and it shows you every transaction and automatically categorizes for you.  When I first plugged in our bank accounts, it pulled up all our transactions and gave us a pie chart that categorized where our spending was going.  It was pretty neat to see it all available and categorized for us.  One of the most shocking things during the start of this new budgeting tool, was the realization that in the month of March we had spent $60 in coffee – yes, you read that right – $60 in COFFEE!  I read the alert and thought, no way, this cannot possibly be accurate, but low and behold, I was wrong and I was completely appalled.  We started having financial conversations and telling ourselves we couldn’t just grab a coffee whenever we wanted.  Since then, we have learned how to step back and say no to a lot of things. We’ve learned that we need to budget. That in no way means that we stopped cold turkey – it is a process, but knowing that we both have access to this tool that shows us exactly where our money is going is like a discipline tactic and it has helped us stay on track.  Along with budgeting, we have also increased our 401(k) and savings, we’ve started the debt snowball* once again and most importantly, we have begun to tithe our 10%.  In the Bible, God challenges us to return 10% of all we make back to Him through the local church.

Chris and I have been going to Fellowship Church for a year now and during this time, we have given back, but not in the amount that the Bible instructs us to.  I remember the first time God put it in my heart to give $100.  At that time, I just felt it in my heart and I did it with no reservations.  I increased our giving, but it still wasn’t 10% of our combined income.  After the first finance class, we went home and calculated how much our tithing would be.  It was not fun seeing that number.  We looked at each other and questioned how would we make this happen.  We didn’t know how we would be able to give that much.  We made it a priority, and what do you know, we had the money to give back to our church all along.  I kid you not, the first month we gave a full 10%, I found that we had more money in our accounts.  Additionally, I found little “signs” and “rewards” come forth.  For example, in the month of March and April, we managed to have free date nights, we were blessed with discounts or savings in different areas – it was God’s way of telling us, “See, you are going to be okay.  Don’t worry about money.  If you trust in me, not only will you give back to your church, but you will have more than enough, if not more.”  Having this confirmation was what I needed.  I’ll be honest, I’m the worry wart of the family.  I’ll start stressing even before there is a reason to stress and finances are the worst.  Putting this trust in God was hard for me.  The first time I gave my 10%, I was so hesitant and even knowing that God would provide a way, I was still doubtful.  As I was keying in all my information online, the doubts, the worry, they all crept in, but I fought it as much as I could.  Once I hit submit, it was done.  No turning back.  And there in black letters was my reassurance. 

THANK YOU FOR YOUR CONTRIBUTION! Your contribution to Fellowship Church was processed successfully. In Acts 20:35, Jesus said, “It is more blessed to give than to receive.” Your generosity is a reflection of that truth and an example of what “Blessed to be a blessing” means! You can view this contribution as well as all your giving records by visiting www.FellowshipChurch.com/give. Thank you for living out a life of generosity!

Now, it’s not so painful.  You see, Chris and I were blessed with life change at Fellowship Church one year ago and that was all due to other people’s generosity.  There was no doubt in my mind, that we would do the same, it was just our fear and anxiety and doubt that held us back from giving all that we could.  The classes that Fellowship had really helped us.  A big eye opener was a verse that was given during one of the finance classes.  “...Test me in this,” says the Lord Almighty, “and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it.” – Malachi 3:10    This verse struck me hard.  God is telling us, “Test Me!”  If we obey, he will not only take care of us, but he will pour out so much blessings that there will not be enough room to store it.  It’s like us as parents, we tell our children, clean your room, mind your manners, do well in school and I’ll do anything and everything for you.  It’s just like that.  It’s obeying what God has instructed us to do and in return he will reward and bless us. 

I know I still have some debt to pay and a life of lessons to learn about money management, but I’m already on the path of financial freedom.  It takes commitment, prayer, discipline and support.  It won’t always fall into place perfectly and there will be hurdles, but I’m up for the challenge because the outcome is so worth it.  Plus, it’s possible.  And like they say, nothing worth doing is ever easy, right?

My goal is to be debt free by next year (not including our cars and home).  Updates will come along the way.  In the meantime, if you feel inspired, check out Dave Ramsey’s website, or better yet go grab his book, Total Money Makeover



*Debt Snowball – a debt reduction strategy, whereby one who owes on more than one account pays off the accounts starting with the smallest balances first while paying the minimum on larger debts.  Once the smallest debt is paid off, one proceeds to the next slightly larger small debt above that, so on and so forth, gradually proceeding to the larger ones later.  More information click here

XO, 


No comments:

Post a Comment