Please do not be afraid of insurance. When something happens it feels better when you know someone or something is there to help you. I got into a fender bender and it does make you feel better to know that I will not have to pay the full amount to get my truck back on the road. What has insurance helped you with?
Don't give up on your dreams. If you want to be debt free you can be with some planning. There will be rough days and setbacks. But you can do it. I paid off one of my cards today. It was a great feeling and I can not wait to see how God prepares me for my future wealth.
After you get the money that you owe paid off, then you should look into saving. I have one account right now while I am paying off my debt. However, it does transfer $1 every time I use my debit card. When I have $1000 in that account it will transfer to a savings account of its own. I want to keep that in an account for an emergency fund. Then I will be working on saving for an extra month. I have wrote out all my bills and know about how much I spend a month. I will be saving that amount just in case something happens and I need it.
A savings account is a great thing to have. It can work for you if you let it. There should be 3 things that you save for:
1. Emergencies- You never know what is going to happen and if something happens unexpected then you need to be prepared.
2. Major Purchases- One day you will need a new car or even a new piece of furniture.
3. Wealth building- retirement fun
Unfortunately, even though the U.S. is such a rich country, we do not all save like we should. I am trying to work on this. I am not give much money to each fund but even a little in each one while I finish paying off debt is better than none. What does your savings strategy look like?
Matthew 25:14-30 English Standard Version (ESV)
The Parable of the Talents
14 “For it will be like a man going on a journey, who called his servants[a]and entrusted to them his property. 15 To one he gave five talents,[b] to another two, to another one, to each according to his ability. Then hewent away. 16 He who had received the five talents went at once and traded with them, and he made five talents more. 17 So also he who had the two talents made two talents more. 18 But he who had received the one talent went and dug in the ground and hid his master's money.19 Now after a long time the master of those servants came and settled accounts with them. 20 And he who had received the five talents came forward, bringing five talents more, saying, ‘Master, you delivered to me five talents; here, I have made five talents more.’ 21 His master said to him, ‘Well done, good and faithful servant.[c] You have been faithful over a little; I will set you over much. Enter into the joy of your master.’22 And he also who had the two talents came forward, saying, ‘Master, you delivered to me two talents; here, I have made two talents more.’23 His master said to him, ‘Well done, good and faithful servant. You have been faithful over a little; I will set you over much. Enter into the joy of your master.’ 24 He also who had received the one talent came forward, saying, ‘Master, I knew you to be a hard man, reaping where you did not sow, and gathering where you scattered no seed, 25 so I was afraid, and I went and hid your talent in the ground. Here, you have what is yours.’ 26 But his master answered him, ‘You wicked and slothful servant! You knew that I reap where I have not sown and gather where I scattered no seed? 27 Then you ought to have invested my money with the bankers, and at my coming I should have received what was my own with interest. 28 So take the talent from him and give it to him who has the ten talents. 29 For to everyone who has will more be given, and he will have an abundance. But from the one who has not, even what he has will be taken away. 30 And cast the worthless servant into the outer darkness. In that place there will be weeping and gnashing of teeth.’
I wanted to share a few insights about debt collection. One of my friends was having problems with creditors and then was given some legal advice. I am passing it on to you:
All contact with you except for legal proceeding paperwork
Also, do not be intimidated by them, they can not take money from wages unless they win the court case. However, do try to work with them on getting the money that they owe. They are just doing their job. We made the mistake of buying things that we do not have money for.
The wicked borrows and does not pay back, But the righteous is gracious and gives.
Credit card companies are sneaky. They want you to use them. However, if you are not a good steward of your money you may not need to use them. I am lucky that my credit is still good enough that I was able to get no interest card and transfer my balance onto it. I am planning on paying that off and cutting up the card. I have had it with this problem.
Take time to check and see what your debt is and snow ball the bills. Pay off the smallest first and then keep going. It will take time but will be worth it. Also, look for a part time job that will help you during this time. I am doing some extra things to try and help myself get out of debt. Good luck hunting!
This week I have been going through my cards, paying off what I can transfiguring to a no interest card what I can't and cutting up my old credit cards. i am planning to pay off the rest of my cards in the coming months. What have you been doing to help you?
Since it is the beginning of the month, I wrote all my expenses down and then the cost and whether it had been paid. Until all my bills were paid I did not pay myself. I did not eat out or buy any wants. It has helped a lot. Now that I am done paying as I buy something I am writing it down too. It is amazing some of the stuff that I have put back because I do not want to write it down.
What I have found that helps me the most is writing down what I buy and how much it costs. It gives me another sense of accountability. There are no surprises at the end of the month. I do not like being in the red at the end of the month. Does this help you?