Fix Your Finances
With America headed toward biblically prophesied days of reckoning, you urgently need to put your financial house in order. The sooner you act, the easier it will be on you and your family as times get tougher. God will protect His people, but you need to keep His laws and do your part too. Begin by considering these steps.
1. Do a budget
Almost seven out of 10 Americans don’t have a budget. This single fact explains so much of America’s financial condition. Bounced checks, overdrafts and credit card debt are signs of crisis living and bad money management. A proper budget will remove uncertainty, money arguments between spouses, and financial worry from your life. Google “zero-based budget” to get started.
2. Build an emergency fund
Emergencies happen. It is a fact of life. Yet more than a quarter of Americans have no emergency fund. These people are one paycheck away from disaster. And it is not just poor people: Only half of households with incomes above $75,000 have enough money to cover six months of expenses. If you have debt (not counting your mortgage), start by saving up $1,000 until you’re in the black. If you’re debt-free, then aim to save three to six months’ worth of expenses.
3. Get a second job
Tossing pizzas and parking cars may not be the most rewarding of jobs, but the payoff comes when you are debt free. Taking extra work on a temporary basis is a great way to pay the bills and get out of debt while you get your budget under control.
4. Learn the difference between a need and a want
Needs are food, shelter, transportation and clothing. As long as these four needs are taken care of, you can handle forgoing the rest.
5. Understand what an emergency is
The pizza man knocking on your door is not an emergency. Your car getting a flat tire because the tires are bald is not an emergency. These are facts of life and should be planned for. Build known expenses into your budget, and then don’t stress when the kids “suddenly” outgrow their shoes.
6. Get out of debt
Once you have your $1,000 emergency fund, get out of debt—especially all non-mortgage debt like vehicle loans. Americans owe $800 billion on their vehicles. Far too many people are driving brand new $40,000 trucks while making only $35,000 a year, and they borrow to make this happen. This is a bad idea: New vehicles lose 70 percent of their value after just four years. If you are not too far underwater, consider selling and buying a less expensive vehicle that has already depreciated in value. You could save a bundle on insurance, gas and financing costs.
7. Learn God’s laws on finances and success
This is the most important step you can take—and the only one that can provide absolute protection from America’s coming economic collapse. Begin by ordering a free copy of Solve Your Money Troubles! and The Financial Law You Can’t Afford to Ignore.