The soul of a lazy man desires, and has nothing; but the soul of the diligent shall be made rich. Proverbs 13:4 (NKJV)If I can give you anything today in wisdom, then I hope you take this post seriously. Our country is in turmoil economically. That turmoil is due to our extremely bad spending and saving habits.
If we continue to be lazy in our action towards debt, then we all will end up with nothing. Diligence is key.
Here is what I wish people had taught me when I was younger.
In order to get out of this problem we need to gain control of our personal budgets. I want to share with you a simple plan that will keep you out of debt. Part of it had to do with the prior post on buying a car.
This is not my plan. The plan was set up by Dave Ramsey. Here it is:
- Avoid credit cards like the plague! Credit card companies are being called the new "loan sharks of America." Paying the minimum payment on a credit card will get you 30 years of debt!
- Set aside $1000 for emergencies. That means taking a portion of your paycheck and setting it aside in a savings account (might as well make money with it)!
- Learn the importance of giving. If you do not pay tithes, start doing so now. If you can part with it, you can't save it. You will be constantly living paycheck to paycheck if not.
- After step 2, set aside money to last you exactly three to six months in expenses, just in case. Put this money in a money market account or at least a savings account.
- Only after completing the first four steps can you go to the next steps!
- Set aside 15% of your income for a Roth IRA and other pre-tax retirement accounts.
- Use extra funds to start paying off real estate. Or invest in real estate.
- Continue to build your wealth and give!
To learn more about this, go to Dave Ramsey's website.
Here are two articles you should read:
Finding Financial Freedom
Steps to Making a Budget
2 comments:
Even the Bible tells us to manage our finances.
Funny how old wisdom remains contemporary. Thanks for stopping by the blog.
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