Debt-Free Living

 

Purchase this book at titus2.com (foreward by Jim Bob Duggar)

Debt-Free Living...don't you just love the sound of that?!  Despite many people wishing they didn't have any debt, as imperfect people, we seem to always find ourselves into debt.  So what does the Bible say about debt and how do we get out of it?  That's what we're going to talk about in this section.  This is such an important topic because so many people are burdened down with debt that it tears apart their families, friends, jobs, their walk with God, and pretty much their entire life!  So let's dig into what the Bible says about debt, then we will look at realistic ways to get out of debt and STAY out of debt!

What does the Bible really say about debt?

"Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law." Romans 13:8

 ^"The wicked borroweth, and payeth not again: but the righteous sheweth mercy, and giveth."     Psalm 37:21

There are also many other verses, but I think these will suffice for this post.

In the first verse, Paul is urging us not to owe a man ANYTHING.  I think that even goes beyond money.  The second verse is speaking primarily of those who borrow and do not pay back what is owed.  Obviously, in this case, you are not keeping your commitment to another person, which is not good.  It further tells us what we SHOULD do: we should be the ones giving!

Borrowing from others can make us a slave to the lender.  I'm not saying that all borrowing is bad (for what if you have been a good steward of your money and you find yourself in a medical emergency).  The point is, if you MUST borrow, you need to do EVERYTHING in your power to pay that person back...and I think if you are serious about paying someone you owe, you will forego all luxuries until your debt is paid.  If you can afford a $60 cable bill, you can afford to be paying your lender $60 a month at the very least!

I think everyone is at least on the same page that debt is not good.  Many of us have debt, but I don't know anyone who has it that wishes that they didn't!  We may be in debt because of an unexpected emergency or maybe we were not good stewards of our money.  Either way, if you're in debt, it's a good idea to get out of it as soon as possible.

However, it is sad to see someone want to hurry up and pay off one item so they can go into debt and get another item.  My generation has become impatient.  We want things RIGHT NOW!  I think that's why most of my generation find ourselves in debt.

You need to look at your own finances.  Why are you in debt?  Are you really serious about getting out of debt, or do you just want to get out of debt so you can buy something else?  Once you get out of debt, despite having many monthly bills that you no longer have to pay, it becomes all about saving, saving, saving!  Otherwise, it is likely you'll find yourself back in debt to borrow for something when something comes up!

But if you're ready....if you're REALLY ready to get out of debt....read on my sister!

So what are some legitimate ways to get out of debt?  Maybe you're already working all that you can, and you just don't know what else to do.  I'm going to give you some tips in what I feel has been beneficial to our family.

Pay your tithes! 

 

We can debate whether paying your tithes is old or new law (I believe it is old, but believe as a Christian we should have a desire to give to ministries to spread the Gospel and help those in need), but what we can't debate is that 10% is really the least that we should be giving of our money back to God.  I mean really....He died on the Cross for our wickedness...I think 10% is not even close what we should be giving back to Him.  He should have our money, our life, our soul.  So, even if you don't think it's required to tithe, I hope you agree that tithing is good.

If you are not tithing (or offering or whatever you want to call it), I can't see how you've turned your finances over to Him.  So many people think they can't afford to tithe.  My sister, you can't afford NOT to.  If you've not been good with your finances and you have made bad choices, repent and turn from your ways.  Then begin working to make your debts good.  Start with making your debts right with God.  It's already His anyways!  Make sure you are giving what you can and just not the least amount possible...that would not be the right heart and you would be giving out of obligation as opposed to joyfully.  I can't tell you a magic number of how much to give back to God.  That is between you, your spouse, and God.  Pray about it, and seek His wisdom.  Don't worry about what you can or can't afford, just be faithful to God and let Him help you through this time.  It will be difficult, but it can be done, and God will be there if you lean on Him.  We must be willing to further His Kingdom with the finances He has blessed us with.

CUT EXPENSES! 

 

 Recently, my husband and I got rid of our life insurance.  We were paying $120 a month for our family, and although we liked the security, we could really use that money every month for other needed expenses (such as saving for a home to purchase).  Why do we think we need a $100,000 life insurance policy anyways?  If we aren't in debt, all we need is to pay funeral expenses (and we have enough to cover that through my husband's work policy).  In my mind, it's better to pay off the debt so you don't need that money if something DOES happen to you.  Secondly, it's not guaranteed that anything WILL happen to me for a long time.  For us, it just wasn't a risk worth betting on.  For our family, we were better off not having it.  If one of us dies, we can pay for the funeral and that's all we really need.  I can't tell you if this is right for your family or not, but for us, it was a great way to cut an expense.

 

So what things can you cut?  Obviously, if you owe money to anyone, whether it be a friend or the government, you need to pay it back first.  You need to get rid of all expenses that are not a necessity.  You can leave a very small amount for eating out or such (don't run yourself completely into the ground or you will give up and go crazy, but you should be more than reasonable).  Think of it this way, Let's say I owe $30,000 on my mortgage payment, and pretend I don't owe the bank.  Let's pretend that I owed you that money!  Well, if you saw in my checkbook that I was eating out everyday, I had cable and internet, I had a gym membership, a brand new truck, etc, you'd probably be pretty upset.  You'd think that it was wrong of me to live so nice when I had a debt out to you. 

 

 The same goes with your debts.  Just because your lender may be some big bank that isn't really missing your money, that doesn't mean that your debt isn't just as serious as if you owed it personally to your best friend.  And bankruptcy is not the option my friend.  We need to pay our debts, or at least make as much of a payment we can every month until our dying day.  I want to know that I was a person of my word, and that if I promised to pay someone back every month, I was doing all I could to keep my word. 

 

 

Okay, so let's look at some practical ways in this section that we can cut those expenses:

 

 

Going to the salon (can you not perm, cut, and color your hair at home)? My husband often cuts my hair at home, and yes, even perms it.  Sure, I don't get some glamorous cut, but would I rather impress the world with my fancy haircut or be a person of integrity and pay my debts off as soon as possible?!

 

If you can't find a way to do that, can you barter with your salon stylist?  Make sure to only barter services that they want.  Don't put them on the spot...but maybe they need someone to clean their house every week.  Is there anything you can barter so you're not having to pay for this unnecessary expense?

Do things yourself.  Can you change your own oil?  Does someone else HAVE to make that birthday cake?  This may sound little, but it is these "little" expenses that add up to really large amounts.  You would be shocked to see how much these little expenses compare to those several hundred dollar purchases.  In other words, when doing anything...ask yourself, "can I do this myself, or do I have to have someone else do it?"

Can mom stay at home?  Say what?!  Doesn't that COST money?!  Well, it actually could save you money in some cases.  Even if it doesn't, it's actually usually not much more for mom to stay at home.  Let's look at some examples. 

                  a) If you have two or more kids that are young (and if you plan to keep having more), there is a good chance that mom is not making much more of a salary to cover daycare and expenses associated along with that (gas, time, wear and tear on your vehicle, extra costs associated with your daycare such as special events).  In my case, with two young girls, working the job I was working at, $9 an hour with insurance, 40 days a week....well it just wasn't worth it.  I figured it up, and after daycare I would only be making $400 a month.  Really?  I know that when you need that $400 a month, there's not much you can do, but I felt like that was a small amount of money to pay to be with my kids full time.  So how can I get that extra $400 a month?  By using exactly these tips I gave you...and some of you may be suprised...it actually may be cheaper for Mom to stay at home rather than to send her kids to daycare.  Make sure you are doing your numbers!

              b) I am the typical woman who likes to spend money.  So one way that I am able to stay at home is that I sell items on Ebay.  It took me awhile to learn the ropes (what sells and what doesn't).  I can't just sell things I like, I have to sell what sells!  I use this money, not to pay the bills (we leave that up to my husband), but for my extra expenses.  If I really want a new book that is coming out, I have to work hard to earn that money!  This allows my husband to focus on our necessities and cut down debt, but it allows me to splurge on things I like!  With Ebay, you can make as much or as little time as you put into it.  I have children, so I don't put much time into it.  Therefore, I only make about $10 a week.  However, that extra $40 a month for me is amazing!  If you're looking for things to sell, start with your old stuff.  Namebrand clothes and Maternity are really the only clothing that I have found worth trying to sell.  If you don't have namebrand clothing, try your online yardsales on facebook (actually, anything you can sell on there is usually better anyways.  You won't have as big of a customer base, but you can save on shipping and fees).  I actually make a few crafts to sell.  It encourages me to learn how to make things, and I make a little money at it!  Research it and see if you can't make about $50 a month!  That money can really add up every month!

              c)  When I say I'm a stay at home...I'M A STAY AT HOME MOM!!!!  I don't usually go out too often.  Since I like to spend, there are too many temptations out there for me!  I buy groceries once a week, and I visit my Grandparents twice a week, and I attend church.  That is it unless we have something going on as a family (which, then, my husband won't let me blow money)!  This is vital!  If you really want to stay at home with your children, then you must do just that.  There is a lot of freedom when you don't work, to come and go as you please, but remember, as a mom, you have a duty to your children.  Make sure you are home often.  You need to be raising your children from home...not always somewhere else!  Also, if you stay at home, do you REALLY need that extra car?  Maybe you do, but that is something to consider!  Pray about it!

SELL, SELL, SELL!!!!   I've already mentioned this previously, but sell on Ebay, Etsy, Amazon, Online Yardsales on Facebook.  Learn to make something that is cheap, but in demand.  Make sure it doesn't take a lot of time to make.  The more unique it is, the better price tag you can put on it on Ebay.  It will take longer to find a buyer, but you won't be busy making items everyday.

One thing I just sold on Ebay is formula coupon checks.  I get these in mail by signing up on websites such as Gerber, Enfamil, and Similac.  I just received four $5 off Enfamil Checks.  I sold all four of them on Ebay for $10.75.  I profited just under $9.00 on the transaction.  I just got four Gerber Good Start checks in the mail and plan to do the same.  I also received two samples of the formula and plan to donate it to my local pregnancy center.

Once you know that you will for sure be breastfeeding or you know what formula your baby needs, you can get rid of those extra checks.  It's always great if you can find someone at the store who you can bless them with for free.  However, if you can't, you can always sell them online and make a little money (you can always keep your online money or donate it online through Ebay...there are some great places to sponsor).  You can also donate just a portion of your sales and keep some for yourself as well.  It's up to you!

Make a Budget!  Write your budget out on a piece of paper and look over it with your spouse.  Both of you need to be earnestly praying about the items that you can let go.  Don't just decide....PRAY!  Obviously, you can't cut things like your electric bill, but can you lower it?  Can you do things to cut back on electricity?  Can you challenge your children to cut your electric bill?

 

  I once heard a financial advisor say, "Look up your average electric bill for a month and tell your children that for every dollar they cut your bill down, you will give them half.  So you get some savings, and your children get some money!  You'll be amazed at how they'll be reminding YOU to turn out that light!"

 

  Or in my case, do you really need that life insurance?  If you have a gym membership, can you not walk outside?  Maybe even purchase a used treadmill?  Do you really need that much gas money?!  Limit how much you eat out.  Take your lunch to work.  There are so many things that can be cut out of our monthly budget.  You just need to write it down, take it to your spouse, and PRAY!  Let God direct the things that need to go.  Remember, He wants you to be a good steward of your money.  Just because you have the money, doesn't mean He wants you to blow it!

 

 

USE CASH!  Often, credit cards with cash back encourage you to use their cards.  This is only okay if you have NO credit card debt and are paying back your credit card every month.  If you have ANY credit card debt, or have a tendency to have this, you need to use cash.  Do the envelope method.  When your check comes in, pull out all of the cash you need for your expenses.  Then, take envelopes and write your bills/expenses on separate envelopes.  For example, your envelopes may look like mine:  Tithes and Offering, Groceries, Miscellaneous, Lindy Gas, Mark Gas...  Then put the allotted money into its appropriate envelope.  Then, when you go in to get groceries, do NOT take in any other envelope or credit card!  You will only spend what is in that envelope for fear of going over and having to put something back!  It is a great encouragement!  If you must use a credit card/debit card (maybe for an online purchase), please have a rule that you pay it back that SAME DAY!  PERIOD!

SAVE ONLINE  If you must purchase online, I encourage you to always do a few things first:

 

 

Let's pretend you need to purchase some new clothes from The Children's Place. 

    

First, I go to http://home.bigcrumbs.com/Lindy24 (Big Crumbs pays more money than Ebates).

This website is totally free to sign up.  Once you are signed up, you look for your store in the search bar.  In this case, "The Children's Place."  From there, I just click on the "Shop Now" button.  What will happen is I will be redirected to my store on the same browser.  Everything from there on will be the same.  Just remember not to close out of that browser or it won't count. 

 

How Big Crumbs works is that when you go to another website through their site first, it registers that to your account.  With the Children's Place, I get 3.5% cashback.  So, whatever I spend at The Children's Place, I will get 3.5% cash back of my subtotal sent to my Paypal account!  It is honestly that easy.  There are no strings attached.  You can also make money by referring others and using referral links (like the one I have above).  You can share it on your blog, facebook, or whatever.  You will not make millions of dollars doing this.  But this does save you money, much like couponing. 

They also have what is called Crumbshare.  Basically, the more you use them, the more stock you earn in their company.  If they ever sell, whatever their company sells for, you will get a portion back depending upon how much you have invested.

Once your signed up, going to Big Crumbs and typing in your store takes less than a 30 seconds to do.  So if I can save even $1 by doing it, it's worth it.

 

 

Now that I'm at The Children's Place, I only go to clearance.  I do not shop anywhere else.  If I do, I am tempted to purchase something we don't need.  If it's not on sale, we don't need it!  That's the second way to save!

 

Thirdly, I open up another browser and go to www.retailmenot.com.  You can also go to your search engine and search "The Children's Place Coupon Code."  Most stores always have coupon codes floating around.  Never buy online without looking for one first!  If it's a company on BigCrumbs, they usually have coupon codes.  This code can be applied at checkout PRIOR to payment in a box labeled, "Coupon Code" or "Discount Code," or something of that nature.  Usually, these discounts are free shipping, or a certain percentage off your order (I love Children's Place because their discount codes can be combined with clearance)!

 

Lastly, I use my credit card to make the purchase, which gives me 1-5% cash back  on my entire purchase (tax, shipping and all).  I do NOT recommend this if you have ANY credit card debt.  My husband and I make the purchase, and immediately go to our credit card account and pay the bill.  You're not saving money if you're paying interest, so don't do it if you have any credit card debt!

All of these ways can save you a lot of money when shopping online (especially if you do it a lot)!

As of today, if I were to make a $50.00 purchase at The Children's Place, between Big Crumbs, my coupon code, and my credit card rewards, I would save $14.25.  This is not including the money I'd save by only shopping clearance.  You can see, when you have to shop, just be a smart shopper!

SAVE MONEY WITH KIDS!!!  Go from formula to breastfeeding, switch to cloth diapers, buy used clothing.  All of these things can save you money with kids!  We pay about $100 a month in formula (I was unable to breastfeed), but come to find out, we think it was the breast pump and not me!!  So if I am blessed with another child, I'm splurging for the good hospital grade breast pump. 

I don't want to go to cloth diapers, but honestly, it will save us $50 a month in diapers (I have two in diapers).  I plan on purchasing just two and see how it goes.  Between these two things, I'm already saving $150 a month!  (Update:  If you  purchase the Gerber Proof Waterproof Pants to wear over the diapers, they are actually pretty good.  We have leaks every now and then, so at nap, bedtime, and travel, we still wear regular diapers.  But I am saving so much by not using diapers at home since we are home most of the time.  Also, you can buy an attachment for $20 for your toilet to clean out those poopy diapers!  It's like the spray attachment on your sink.  Just spray the poop into the toilet and then throw your diaper in the wash)!  These may not be efficient for you if you not plan on having many children, but if you are planning on having several children, this may be way cheaper!  You just need to do the math and see what is best for you!

 

We purchase our girl's clothes from a friend (smoke and pet free home) who has two girls.  She doesn't have to price and put them in a yardsale, and I get great clothes at $20 a trashbag!  Great deals!  Then, I only have to buy a few missing items, such as leggings or cardigans, which I will only purchase on sale!  If there are items that aren't really for us, I just sell them online on the online local Facebook yardsale page, or have my own yardsale!

DIY  Make your own bread, learn to can, freeze your food (so you're shopping less and less tempted), make your own dishwashing soap, laundry soap, shampoo, etc.  There are so many things you can make of your own.  Just start searching on Pinterest now!  You can always follow me on Pinterest..  I have some boards that are really great in this area!  All of this is small change, but together, really adds up!

MAKE YOUR OWN!  Make your own baby food!  Don't pay for those expensive jars!  Make your own (look it up on my Pinterest page for more info)!

 Cut off cable/internet.  These are not necessities.  If you're in debt, they need to go.  If you want to keep them, then you need to be selling on Ebay or something to pay for it every month.  It should not come out of your normal budget if you are in debt.  If you can't make that money extra one month from Ebay, then you cut the bill.  Period!

WORK ONLINE-- Start a blog, do Youtube videos... Don't expect to have a viral video, but if you have a talent, put it on Youtube!  You won't make tons of money, so be careful how much time you invest, but you can make some money (hopefully to pay for that internet bill)!

Recycle.  If you use cans and such...make sure you recycle!  It's good for the environment and your pocket!

When you're dissatisfied...  Call your cable, phone provider and tell them you're unhappy with your price and considering going to a competitor (don't lie...only if this is true).  So many times when I call to cancel my service, I get offered the BEST deals (I had three lines with AT&T and this was the case for them).  It's definitely worth a shot!

Buy used and save the difference.  Ever heard the Duggars say this?  Well, remember, they had like 14 kids before their show ever started and were debt free and not on any sort of government assistance!  They buy used whenever possible.  Their clothes, vehicles, anything they can !  It's a great motto to have!

 Eat deer meat, hog, and fish.  It has taken me awhile to acquire a taste for wild game.  I had to start out doing like half hamburger and half deer meat, but eventually, you can't taste a difference (put a lot of onion and sage into your meat too). This can save you tons of money! 

Switch to natural cleaners.  Baking Soda and White Vinegar go a LONG way when cleaning a home.  Usually, you don't need expensive cleaners.  Plus, they're just not good for you to use.  Ditch the expensive stuff.  I usually only purchase the off brand of the magic eraser!  Most everything else can be cleaned much cheaper by doing it naturally!

As you can see, with getting out of debt, there's not magic way.  It's just plain hard work.  You can spend the rest of your life hoping you win the lottery, or you can do something about it now, so that later on, you can know what it feels like to be financially free!

What are some ways that you save money?  I'd love to hear them in the comments below!  Maybe I can add them to this list!  Let's encourage one another to be good stewards of our money, whether God blesses us with $10 or $1,000,000...it's all His money and we should use it in the way He would have us to. 

I'm often guilty of thinking things like, "Well I don't waste my money on things like 'she' does."  I'm comparing the way I spend my money to others to give me justification for my purchase.  It's sin.  There's no way around it.  God may convict us all to spend our money differently.  This is exactly why we can't compare our finances to one another.  We need to be prayerfully making a budget that is directed by God.  If we don't have a budget, I don't believe we are being good stewards of our money.  The question should not be, "Do I have enough money to buy this?"  The question should be "God, is this a purchase you would have me make?"  Let's do all things that are honoring to God!  You can read more about doing things that are edifying here.   Let's not compare ourselves (not just in money, but in all things) to another sister in Christ to justify our sins.  I want to be a lover of God and pleasing Him and not a lover of pleasure!

So, let's hear your tips!!  Let's encourage one another to "owe no man anything, but to love one another."  Debt is BONDAGE, and as Christians, we have the great freedom to give any bondage over to God.  Let Him carry our burdens.  We just need to be faithful to His will, and He will be faithful to our outcome!