I thought I’d speak a little more about finances and share a few more things that our struggles have taught me. 

Most importantly, I believe that having debt is a bad thing.  Any kind of debt.  I have a pretty strong opinion about this.

The Message Bible says, “The poor are always ruled over by the rich, so don’t borrow and put yourself under their power.”  (Proverbs 22:7.)  The NASB, NIV, and NLT use the phrase “servant.”  Ask any couple who are up to their eyeballs in credit card debt what their lives are like and they’ll tell you.  When you borrow, you become a slave to the one who loaned you the money.  Trust me… it sucks. 

God never calls money evil, but He does challenge us to be wise with the use of money.  As Christians, we should learn what the Bible teaches and put those financial principles in place in our lives. 

That said, I thought I would list some mistakes we’ve made and things I’ve seen:

“Buying a home too soon.”  My wife and I were rushed into buying a home by a family member.  We were told that renting was a waste of money and we needed the tax break that home ownership allows.  So we found a lender who’d let us put the least amount down and would stretch out the percentages to get us into a home.  What we didn’t realize was how many hidden costs are associated with owning a home.  Not only do you have a higher monthly payment then your rent check, but you have to pay to have things fixed.  

What should we have done?  We should have been more patient and saved our money for a 20% down payment on a fixed rate conventional loan, with preferably a 15 year term.  If you can afford to save for the down payment, you can afford to buy the home.

“Buying too much house.” One of the toughest situations I’ve seen is where the house payment was taking up a large percentage of the families’ monthly income.  There isn’t much money for food when the house payment is 35-45% of the monthly budget.  (That’s the danger in ARMS loans, interest only loans, etc.  They payment is only going to go up!) 

A mortgage payment should be 25-28% of your monthly budget.  You’ll have money leftover to eat.

“Buying new cars.” I have to admit that I love new cars.  But buying a new car was one of the biggest mistakes we made early on in our marriage.  You lose money the moment you drive it off the lot and pay five or six years on something that’s going down (way down) in value. 

Always buy a reliable used car and always pay cash. 

“Getting a Credit Card in Case I have an Emergency” or “Using Credit for my Monthly Expenses Instead of Cash.” Regardless of your intentions, you’ll use the card for non-emergency items, plus spend more per month then you have budgeted.  Before you know it, you have an unpaid balance on the card in the thousands. 

I like Dave Ramsey’s suggestion for handling emergencies.  His very first step in his budgeting process is to save up $1,000 in an emergency fund.  When an emergency happens you can pay with cash!  And instead of using your credit card for regular monthly items like gas and food, get on a good budgeting system that manages your spending.  Pay with cash and you’ll find yourself spending less and thinking more. 

“Frequently Eating Out.” If there is any area of weakness in our monthly spending, it’s eating out.  We’re not horrible about it, and my wife does a great job of planning, shopping for, and preparing incredible meals.  But falling into the “Chick-fil-A trap” can wreck a monthly budget. 

Spend time every week preparing a menu of meals and making a grocery list for what you need.  Not only will you save money, but you’ll eat healthier. 

“Not Communicating.”  It’s very important for a husband and wife to regularly communicate about the family budget, and for a husband to get the counsel of his wife before making any major financial decisions.  For years I tried to manage our finances myself.  I thought I was protecting my wife from the hard things that our family was dealing with.  What I’ve learned is that when she and I communicate regularly about finances, she’ll give me suggestions that are very helpful.  She’ll come up with ideas that I never would have thought of.  She and I keep each other accountable. 

Finally, the most important thing.  Regardless of what your family budget looks like, put ‘tithing’ at the top of the page.  I recently heard a pastor say that ‘tithing’ means a tenth and that ought to be your target.  Ten percent of your monthly income, pre-tax.  But if you’re drowning in debt and can barely feed your family, don’t beat yourself up if you can’t do ten.  The important thing is for you to realize that God wants you to learn the joy that comes with faithfully and regularly worshiping Him with your giving.  Start with what you can and commit yourself to regularly giving more until you work your way up to ten percent. 

Pick up any newspaper or go to any financial/business website and the news is depressing.  For the first time ever, our country has a negative savings rate.  (We’re spending more per month then we’re making.)  Foreclosures are at an all time high.  We hear reports of college graduates starting their careers with hundreds of thousands of dollars of debt.  I think it’s time for the people of God to step up and be different.  Be weird.  Stop being slaves to this culture of consumption.  Quit thinking “short term” and start living with a plan to be financially successful.