Jesus said in Luke 14:28 "For which of you, wishing to build a farm building, does not first sit down and calculate the cost [to see] whether he has sufficient means to finish it?” The Lord was addressing our commitment to Him, however He used this illustration because we could relate to it and contains His eternal wisdom.
There are 3 ways we can pay for things
- Borrowing – by making those “easy monthly payments”, placing it on a credit card, or lending from someone
- Money on hand – we give the clerk the cash or check because we have the funds available now
- Saving – we’ve made provision for the purchase by putting enough away to be ready for it
What also makes it difficult to operate by borrowing is the interest, because you are eventually paying much more than the normal cost of the item. For a typical
new car of $26,000 financed the real cost is $33,000 and an average $222,000 home mortgage will actually cost over $381,000 to pay it off.
Credit cards have high interest rates that average 14.95%, and as you know they go up from there. The typical household
has $7,400 in credit card debt and if that was paid by only sending in the minimum 2.5% of balance amount each month it will take 18 years to pay off with over $6,700 going to interest alone.
Now if we have the money available to make each purchase –
especially large ones, that is a good place to be. We’re not wasting dollars in interest paid and we’re also avoiding the stress of making those payments each month. By always paying your credit cards down to zero each month that qualifies here as well.
If you’re currently in debt this is the first goal to reach.
The next scripture from Proverbs 21:20 is the #1 verse that I bring attention to in Debt-Free Class, it describes the wise person… “There are precious treasures and oil in the dwelling of the
wise, but a self-confident and foolish man swallows it up and wastes it.” It is simply saying the foolish man spent all he had but the wise man had provision available because of how he managed it. It is my #1 verse because if you follow it, freedom from
debt will be a reality for your household. All it involves is simply spending less than what you make.
When you are operating on less than what you make, that allows you to move to the next goal by saving provision for future purchases and the future
in general. Egypt was able to weather seven years of upcoming famine prophesied by Joseph by storing up provision for it (see Genesis 41).
God’s desire is for you and your household to have all of your needs met and to be a blessing to others. However it takes us to apply His wisdom to see the results unfold. First, we honor Him as Lord through faithfulness in tithes and offerings. Lastly, remember again the three ways that we can pay for things…
- Borrowing – by making those “easy monthly payments”, placing it on a credit card, or lending from someone
- Money on hand – we give the clerk the cash or check because we have the funds available now
- Saving – we’ve made provision for the purchase by putting enough away to be ready for it
God Bless you and may He show Himself greatly to you,
Paul
