Frugal-ease

I heard an interesting statistic the other day that indicates that the average American family spends on average, 110% of their income. Hmmm Not surprisingly I heard that the number one cause of marital problems is you guessed it, financial problems. Easy credit has our entire economy on the ropes as people have been lured into buying homes that are too expensive for them with interest only home loans that balloon after too short of a time combined with credit card debt that has amassed to an unprecedented state as folks gorge on stuff they cannot afford.

A good friend of mine confided in me that he has amassed some fifty thousand dollars in credit card debt. He missed a couple of payments and the interest rate is now at 33%. He is being buried alive in this debt and is in the process of trying to refinance his home. He is fearful that he will be unsuccessful and will lose everything. He is fixing up an old camper trailer to live in on the side of the road in anticipation of what might come.

I have not had much willpower through the years in putting off purchasing something that I want when I want it rather than when I could afford it and thus feel a little hypocritical trying to advise anyone on being frugal; however I always had a plan. To be sure sometimes my plans have been a little risky and everything needed to go exactly right in order to succeed, but I have never committed to anything that I could not at least on paper find a way to successfully pay for it. I think the key take-aways here are, “plan” and “on paper”.

The biggest thing that will help you stay out of trouble is to develop a written budget and stick to it. Just as a business cannot function without a “written” budget, neither can a family household. If it does not add up and will not work on paper, it will not add up and work in your life; trust me you ain’t gonna’ hit the lottery!. Simply list your income vs. your debt on paper and see how much is left over before buying anything else. If you cannot see where you can handle buying something without putting yourself at risk, “on paper”, then pass on it. Interestingly I asked my buddy if he had a budget and he said yes. I asked to see it and he told me it was all up here and he pointed to his thick head; therein is the problem.

There are many public non-profit credit counseling services available free for the asking. Crown Ministries is a church organization that teaches the biblical way to manage finances; I have never used it, but have had friends speak highly of it. Seek professional help and listen to their advice and do what they recommend. I will guarantee you that the first thing they will tell you is to cut up your precious credit cards and you will be wise to do so if you cannot pay them off in their entirety each and every month.

Don’t let financial problems ruin your marriage. God will see you through any crisis, but the way He works is by supporting “you” in “working” to help yourself. Get out a pencil and paper and develop a plan. If it looks bad, seek professional help in working your way through it. Develop skill in this area and you can remove one of the biggest headaches for families all over America. Most of all keep your spirits up. Your financial problems are no match for your team, God and you.

Proverbs 18:14
The spirit of a man will sustain
him in sickness,
But who can bear a broken
spirit?
The heart of the prudent
acquires knowledge,
And the ear of the wise seeks
knowledge.