Needs, Wants, and Desires

In the tumultuous economic conditions we have found ourselves in, many are wondering how to survive. In my church, we have started the Dave Ramsey Financial Peace University series, a 13-week series to help people become financially healthy, without debt, and with a plan for the future. The people who have come are loving it.

I started implementing Dave's plan about 14 months ago, and I can say it works wonders. I have money set aside for emergencies, paid off both my family vehicles, and paid off all credit card debt. All I needed was to take control.

Dave uses a seven step plan to help people set goals:

		$1,000 to start an Emergency Fund
		Pay off all debt using the Debt Snowball
		3 to 6 months of expenses in savings
		Invest 15% of household income into Roth IRAs and pre-tax retirement
		College funding for children
		Pay off home early
		Build wealth and give! Invest in mutual funds and real estate

Part of having a plan such as this depends on how serious you want to be in taking control of your debt and setting yourself up for a peaceful retirement.

Planning and goal setting in finances means learning how to live on cash (yes, paying cash for everything - you can do it). Learning how to pay cash for everything will also teach you how to better determine the differences between needs, wants, and desires. Larry Burkett describes them as:

• Needs - These are the purchases necessary to provide your basic requirements such as food, clothing, home, medical coverage, and others (1 Timothy 6:8)
• Wants - Wants involve choices about the quality of goods to be used. Dress clothes vs. work clothes, steak vs. hamburger, a new car vs. a used car, etc. 1 Peter 3:3-4 gives a point of reference for determining wants in a Christian's life.
• Desires - These are choices according to God's plan that can be made only out of surplus funds after all other obligations have been met (1 John 2:15-16).

Most people live outside of their means. They pay out more than they bring in. This is why our economy is making a correction. This is why many are losing their homes. They bought more than they could afford without thinking about what happens if they were to lose their job or what would happen when their interests rates jumped.

Now people are looking for a way out of the mess. Well, here is a hard line approach - suck it up, and pay off your debt. Get rid of your overpriced cell phones and cell phone plans. Dump your cable or satellite service. Stop using your credit cards now. Take your payments in those areas and start paying down your debts. Take the baby steps outlined by Dave Ramsey and get out of stress and into peace. You'll thank yourself in time!

Only you can prevent outrageous debt!