How To Be Financially Free

Show Notes

You’d like to be financially free, but you just don’t know how to make it happen? We’ll tell you how to be financially free on Faith and Finance. 

• First, we have to say that you never want to be financially independent from God. He owns everything and He’s your provider. But you do want to be financially free to serve God more fully.
• Now, those who’ve achieved that know there’s one absolute requirement for financial freedom, and that’s learning how to live— not just within your means— but actually below your means. And to do it for a long time.
• Certainly, that will require doing certain things, which we’ll get into in a bit, but achieving financial freedom actually begins with a mental exercise. You need to change your thinking.
• One of the reasons most diets fail is that they’re often based on deprivation. As you restrict your calories, you feel deprived. And you can only tolerate that for so long before you plow into a box of donuts. Living on a budget works the same way. If you feel you’re financially deprived, you’ll eventually start to overspend again. It’s the opposite of contentment.
• Why might someone feel financially deprived? The Bible gives us several reasons:  greed, envy or covetousness, a lack of faith in God to provide, or any combination of those. But no matter the reason, it makes living on a budget difficult when it should be easy.
• THE SOLUTION
• The solution begins with developing a sense of gratitude for what God has already provided. 1 Thessalonians 5:16-18 says, “Rejoice always, pray without ceasing, give thanks in all circumstances; for this is the will of God in Christ Jesus for you.”
• Next, you must believe that you can learn to live below your means. It might be a challenge, and you’ll probably have setbacks, but keep at it, cutting expenses as necessary. 
• Okay, so much for the thinking part, now it’s time to get your hands involved. 
• TIPS FOR STAYING ON A BUDGET
• First, you must have “margin.” That’s money left over at the end of the month. You no doubt have several fixed bills that come in every month and you pay them without thinking, but start thinking about them.
• Is there a way to lower your mortgage payment? Maybe by getting rid of PMI? Can you reduce your heating or cooling bill? Maybe get rid of streaming apps you don’t use much? Don’t take those bills for granted.
• Sometimes all you have to do is ask. Did you know that you can actually negotiate things like medical bills and household repairs? You might say, “Is that the best you can do?” You might get a discount. It doesn’t cost anything to ask.
• By the way, it’s easier to stay on budget if you actually watch what you spend. instead of having a lot of stuff on autopilot. Download the FaithFi app to set up your budget. It will then track all of your spending and likely reveal things you can easily cut, like those streaming apps I mentioned. That alone could save you a few hundred dollars a year.
• REWARD PROGRESS!
• Now, there’s another tried and true way you can avoid feeling deprived by your budget, and that’s by rewarding yourself. You want to celebrate small victories along the way to financial freedom.
• At the end of a successful week staying on budget, treat the family to ice cream. After you have $1,000 in your emergency fund, maybe go out to dinner. The idea is that it’s okay to splurge now and then, just not all the time.
• The same way, try to spread out your spending for things like having your nails done. Instead of every four weeks, can you do it every six weeks? At $25 a pop, you’ll save around $100 a year.
• If you’re paying to keep stuff in one of those you-store-it places, get rid of it. You can cut that cost and bring in more money by selling it. For most things, if you haven’t used it in a year, you probably don’t need it. Every little bit helps.
• Okay, if you do all of those things, you’ve trimmed your budget as much as possible and you’re still having trouble living below your means, you’ll need to increase those means.
• Look for ways to add to your income. Employers are still desperate to find and retain good workers, so maybe it’s time to ask for a raise, or for more hours, or maybe you can take on a side job.

• Does it make sense to move money into high-yield savings or into a CD?
• Should you tap into home equity to pay off credit cards?