Financial Freedom
Recession Proof • Sermon • Submitted • Presented
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Financial Freedom
Recap last wk: All our money is Gods. He wants us to store up treasures in heaven not earth. He wants us to give to His Kingdom work. (We should give)
If I had more I would give more. If that is the case, lets go to God’s word to find the more.
We're going to look at Proverbs 27:23-24 and some other powerful scriptures that are going to give us wisdom and insight on how to manage our finances, especially during these recessionary times.
Listen, whether you're feeling the weight of debt, trying to make ends meet, or just looking for some wisdom to help you navigate through these financial challenges, today's message is for you!
23 Be sure you know the condition of your flocks, give careful attention to your herds; 24 for riches do not endure forever, and a crown is not secure for all generations.
I. Know the State of Your Finances
23 Be sure you know the condition of your flocks, give careful attention to your herds;
Ill: Story of my two sheep: Lamb & Chops
Pay attention: Teacher, Mr. Evans please pay attention / Me, I am sorry Teacher I am to poor to pay attention.
Is that not how some of us have dealt with our out of wack finances? I am broke so I will just ignore the situation.
Ignoring financial challenges is not a solution.
12 The prudent see danger and take refuge, but the simple keep going and pay the penalty.
See danger and take action verses ignoring the situation.
1. Assessing Your Debts.
- Understand the total amount owed.
- Know the interest rates and terms of each debt.
2. Creating a Budget.
- Track income and expenses.
- Identify areas to cut back and save.
II. Plan for the Future
24 for riches do not endure forever, and a crown is not secure for all generations.
3. Build an Emergency Fund.
37% of Americans said they’d be unable to cover a $400 emergency. - Federal Reserve
- Save for unexpected expenses.
- Aim for 3-6 months of living expenses.
4. Prioritize getting out of Debt.
7 The rich rule over the poor, and the borrower is slave to the lender.
Slave - verse as fill in?
The bible makes the word debt conjure up images of slavery.
Why payday lenders are so bad. - For instance, Robert took out a $300 loan. At a 15% interest rate for a two-week loan period, he racked up $45 in interest. But he couldn’t pay it back in two weeks, so he decided to extend the loan (for another fee of course). So now his $300 loan has turned into $360. And by the next payday, he still can’t pay his bill and decides to get another payday loan to pay off the first, and the cycle goes on two more times. At the end of the cycle, Robert will have only borrowed $300 but paid $105 in interest and fees to the lender. That’s 35% interest—a 912.50% annual interest rate.
1 My son, if you have put up security for your neighbor, if you have shaken hands in pledge for a stranger, 2 you have been trapped by what you said, ensnared by the words of your mouth. 3 So do this, my son, to free yourself, since you have fallen into your neighbor’s hands: Go—to the point of exhaustion— and give your neighbor no rest! 4 Allow no sleep to your eyes, no slumber to your eyelids. 5 Free yourself, like a gazelle from the hand of the hunter, like a bird from the snare of the fowler.
Vs. 3: So do this my son, to free yourself
Vs. 5: Free yourself - Like it is life or death
A Gen Xer who got $249,255 in student loans forgiven. - Business Insider (article last Sunday)
Gazelle running from a cheetah video.
Steps to getting debt free. / Consider debt snowball - Insert or Slides?
Step 1: List your debts from smallest to largest (regardless of interest rate).
Step 2: Make minimum payments on all your debts except the smallest debt.
Step 3: Throw as much extra money as you can on your smallest debt until it’s gone.
Step 4: Take what you were paying on your smallest debt and add that to your payment on the next-smallest debt until it’s gone too.
Step 5: Repeat until each debt is paid in full and you’re completely debt-free!
https://www.banktivity.com/learn/wp-content/uploads/2017/10/SNOWBALL3.png
How will I get the funds to pay off debt?
1. Sell anything that isn’t nailed down.
This isn’t the time to keep up those hoarding tendencies. If it’s not nailed down and has even a slight value, sell it!
2. Cut any extra spending.
This is a hard one, but if you want to turn your finances around, you have to get serious here. Don’t even step foot inside of a restaurant unless you’re working there.
3. Don’t go into any more debt.
You might be thinking that’s easier said than done, right? Wrong. Just don’t do it. Cut those credit cards up.
4. Find a side job that will make you some quick money.
The best way to increase your income fast is by getting another job (or two). There are plenty of ways to make money. You just have to roll up your sleeves and get to work. Check out Craigslist, post in your neighborhood Facebook group, or ask a neighbor if they need your handy skills.
If you had an extra $500 to $1,000 a month to give to God’s work or other charities that are near and dear to His and your heart. How would that make you feel?
8 Let no debt remain outstanding, except the continuing debt to love one another, for whoever loves others has fulfilled the law.