Steps to Financial Freedom

How can we achieve financial freedom? What must we do according to God’s plan?

There are many articles on Financial freedom today. You can read them in many web sites and magazines. This article from Crown Financial Ministries is different in its approach to financial freedom. It starts withGod and what the principles He gave for us to be free! I pray that you will get blessed and use this material on your quest for financial freedom.

1. Transfer Ownership
Christians must transfer ownership of every possession to God. This means money,
time, family, material possessions, education, even earning potential for the future. This is
essential to experience the Spirit-filled life in the area of finances (see Psalms 8:4-6).
We must realize that there is absolutely no substitute for this step. If we believe that we
are the owners of even a single possession, then the events affecting that possession are going
to affect our attitudes. God will not force His will on us. He will not input His perfect will
into our lives unless we first surrender our wills to Him.

However, if we make a total transfer of everything to God, He will demonstrate His
ability. It is important to understand and accept God’s conditions for His control (see
Deuteronomy 5:32-33). God will keep His promise to provide every need we have through
physical, material, and spiritual means, according to His perfect plan.
It is simple to say that we will make a total transfer of everything to God, but it’s not so
simple to do. At first, we will experience some difficulty in consistently seeking God’s will in
the area of material things, because we are so accustomed to self-management and control.

But financial freedom comes from knowing God is in control.
What a great relief it is to turn our burdens over to Him. Then, if something happens to
the car, we can say, “Father, I gave this car to You; I’ve maintained it to the best of my ability,
but I don’t own it. It belongs to You, so do with it whatever You would like.” Then look for
the blessing God has in store as a result of this attitude.

2. Become Debt Free
A Christian must get out of debt altogether. Again, let me define a scriptural debt. Debt
exists with any of the following conditions.
- Payment is past due for money, goods, or services that are owed to other people.
- The total value of unsecured liabilities exceeds total assets. In other words, if you
had to cash out at any time, there would be a negative balance on your account.
- The family’s basic needs are not being met, producing anxiety in the area of financial
responsibility.
                             
                                 Six Steps to Becoming Free from Debt

a. Have a Written Plan
A written plan is an absolute necessity for everyone who is in financial bondage.
Use a written plan of all expenditures in their order of importance. The order of
importance is crucial because we have lost the point of reference between needs, wants, and
desires. Let’s examine the differences between a need, a want, and a desire.
      Needs. These are the purchases necessary to provide basic requirements, such as food,
clothing, a job, home, medical coverage, and others. “If we have food and covering, with these
we shall be content” (1 Timothy 6:8).
     Wants. Wants involve choices about the quality of goods to be used: dress clothes
versus work clothes, steak versus hamburger, a new car versus a used car. These verses give a
point of reference for determining wants in a Christian’s life: “Your adornment must not be
merely external—braiding the hair, and wearing gold jewelry, or putting on dresses; but let it be the
hidden person of the heart, with the imperishable quality of a gentle and quiet spirit, which is
precious in the sight of God” (1 Peter 3:3-4).
     Desires. These are choices according to God’s plan that can be made only out of
surplus funds after all other obligations have been met.
“Do not love the world nor the things in the world. If anyone loves the world, the love of the
Father is not in him. For all that is in the world, the lust of the flesh and the lust of the eyes and the
boastful pride of life, is not from the Father, but is from the world” (1 John 2:15-16).

b. Determine Essentials for Living
A Christian in debt must stop any expenditure that is not absolutely essential for living
(see Proverbs 21:17). Look for services around the home that can be done without outside
cost. Also begin to develop some home skills. By utilizing individual skills you can begin to
cut down on some of the expenditures that are not really essential.
What I’m expressing is an attitude of conservatism. Begin to eliminate expenditures that
are not essential and remember that many expenditures are assumed to be essential only
because of our society. Fifty years ago almost all the labor supplied in the home was done by
family members—not professionals who charged for it.3
Christians who are in bondage must begin to assess what things they can do for
themselves and stop the frivolities. Once a Christian has begun to do these things, whether in
debt or not, it will become fun and will help stabilize the family life.

c. Think Before Buying
A Christian who is in debt (and even those who are not) should think before every
purchase (see Proverbs 24:3). Every purchase should be evaluated.
- Is it a necessity? Have I assessed whether it is a need, a want, or a desire?
- Does the purchase reflect my Christian ethics? (For example, Playboy magazine does
not reflect Christian ethics.) Can I continue to subscribe to magazines or belong to
book, CD, or movie clubs while I owe others?
- Is this the best possible buy I can get, or am I purchasing only because I have this
credit card?
- Is it a highly depreciative item? Am I buying something that will devalue quickly?
(Swimming pools, boats, sports cars all fall into this category.)
- Does it require costly upkeep?

d. Discontinue Credit Buying
A Christian in debt also should begin buying on a cash-only basis. Often someone in
debt with an asset that can be converted into cash will ask, “Would it be better to sell this
asset and pay off the debts?” That is a possible option but would be valid only if a person first
learned new spending habits; otherwise it treats the symptom rather than the problem.
For example, I remember a couple who was in dire financial bondage from credit card
debts. They owed over $20,000 and paid in excess of $4,000 a year in interest alone. In our
planning, it seemed reasonable for them to sell their home and apply the money to their
debts, which would pay them off. They did so, but less than a year later they were back in
debt again, with about $6,000 in credit card debts—and no home this time.
What happened? We had treated a symptom rather than the problem. The problem was
an attitude dealing with credit cards. They assured me that they would not use the credit
cards; but, without working out a plan for them to discontinue the use of those cards, they
fell right back into the same trap again. As soon as they needed something and lacked the
cash to purchase it, out came the card.
The principle to observe is this: If you are in debt from the misuse of credit, stop—
totally stop—using it. Cut up the cards and mail them back to their respective companies
and ask them not to send you any more. Include in your letter the plan for paying that credit
card debt, and then commit yourself to buying solely on a cash basis.
Once good habits have been developed and the bondage from the misuse of credit cards
has been broken, then evaluate the feasibility of converting assets to pay off the debts. In that
way you won’t simply be treating the symptom. When someone has overextended his or her
finances, it is necessary to sacrifice some of the wants and desires in life to get current;
otherwise, that person will continue to borrow and only get deeper into bondage.4

e. Avoid Leverage
When in debt, avoid the use of what is called leverage. Leverage is the ability to control
a large asset with a relatively small amount of invested capital.
For example, if you bought a piece of property that cost $10,000 and required $1,000
down, that represents a nine-to-one lever. You have invested 10 percent of your money and
borrowed 90 percent.
Borrowing money to invest is not a scriptural principle, because when a Christian
borrows the money from a bank to invest, the repayment of the bank loan is dependent on
the investment making a profit. But if a profit is not made and the investor can’t make the
payments, he or she loses the investment and still owes the bank. The result? Financial
bondage.

f. Practice Saving
A Christian should practice saving money on a regular basis. This includes those who
are in debt. Even if it is only $5 a month, develop a discipline of saving.
This does not mean to store up a large amount of money while failing to pay your
creditors, but one of the best habits a young couple can develop is to save a small amount on
a regular basis.
Everyone in our society living above the poverty level has the capability to save money,
but many fail to do so because they believe that the amount they can save is so small it’s
meaningless. Others believe that God frowns on a Christian saving anything. Neither of these
two reasons is scriptural. “There is precious treasure and oil in the dwelling of the wise, but a
foolish man swallows it up” (Proverbs 21:20). The common attitude presented in the Bible is to
save on a regular basis, and it is important that Christians develop good habits to replace bad
habits.
To get out of debt a Christian must utilize these points we’ve just discussed. There is no
alternative under God’s plan for being debt free.

3. Establish the Tithe
Every Christian should establish the tithe as the minimum testimony to God’s
ownership. As mentioned earlier, how can we say that we have given total ownership to God
when we have never given testimony to that fact?
It is through sharing that we bring His power in finances into focus. In every case, God
wants us to give the first part to Him, but He also wants us to pay our creditors. That
requires establishing a plan and probably making sacrifices of wants and desires until all
obligations are current.
You cannot sacrifice God’s part—that is not your prerogative as a Christian. “Now this I
say, he who sows sparingly will also reap sparingly, and he who sows bountifully will also reap
bountifully” (2 Corinthians 9:6). So what is the key? If a sacrifice is necessary, and it almost
always is, do not sacrifice God’s or your creditor’s share. Choose a portion of your own
expenditures to sacrifice.5


4. Accept God’s Provision
To obtain financial peace, recognize and accept that God’s provision is used to direct
each of our lives. Often Christians lose sight of the fact that God’s will can be accomplished
through a withholding of funds; we think that He can direct us only by an abundance of
money. But God does not choose for everyone to live in great abundance. As stated before,
this does not imply poverty, but it may mean that God wants us to be more responsive to His
day-by-day control.
Each Christian must learn to live on what God provides and not come under the
pressure brought on by driving desires for wealth and material things. This necessitates
planning lifestyles around the provision that God has supplied. It can be done.

5. Keep a Clear Conscience
A Christian must have a clear conscience regarding past business practices and personal
dealings. Freedom from these may well require restitution, as well as a changed attitude.
I recall a friend who had wronged an individual financially before he became a
Christian. God convicted him about this and indicated that he should go and make
restitution. He contacted this individual, confessed what had been done, and offered to make
it right. The person refused to forgive and refused to take any money.
For a while it hurt my friend’s ego and pride—until he realized that it was not for the
offended person that he had confessed but for himself. It was not for the loss that restitution
was offered but for his relationship with God. God had forgiven him, and he had done
exactly what God had asked. Nothing further was required.

6. Put Others First
A Christian seeking financial freedom must always be willing to put other people first.
This does not imply that a Christian has to be a floor mat for others; it simply means that he
or she shouldn’t profit at the disadvantage of someone else. Again, the key lies in attitude.

7. Limit Time Involvement
A Christian also must limit time devoted to business affairs when family involvement
suffers. “Do not weary yourself to gain wealth, cease from your consideration of it. When you set
your eyes on it, it is gone. For wealth certainly makes itself wings like an eagle that flies toward the
heavens” (Proverbs 23:4-5). Many Christians are trapped in this cycle of overcommitment to
business or money pursuits.
It’s important to remember that the priorities God sets for us are very clear and that
every Christian who seeks God’s best must understand God’s priorities.
The first priority in a Christian’s life is to develop his or her personal relationship with
Jesus Christ.
The second priority of a Christian’s commitment is to family, which includes teaching
them from God’s Word. This training requires a commitment to the family unit, and that
means a specific time commitment too. Christ deserves the best part of our day. If you study
best in the morning, get up early in the morning and give time to the Lord. Sacrifice if
necessary to do so. If you find that your family time together can take place best between
8:00 and 9:00 in the evening, commit  that time to God.6
Turn off the television, have the children do their homework early, and begin to study
the Bible together. It is important for the whole family to understand God and to pray
together. Pray for those in need too. Help your children become aware that Christians, as
intercessors, can pray for others and expect God to answer.
The third priority in a Christian’s life should be church activities, social groups, work,
and all the hobbies that he or she might have.

8. Avoid Indulgence
To achieve financial freedom, every Christian must avoid the indulgences of life.
The range in which God’s will can be found is between Luke 9:23 when Christ said, “If
anyone wishes to come after Me, he must deny himself, and take up his cross daily and follow Me”
and John 6:27: “Do not work for the food which perishes, but for the food which endures to eternal
life, which the Son of Man shall give to you, for on Him the Father, God, has set His seal.”
Does your lifestyle fit within this range? Are you willing to trust God and deny yourself
some indulgences? As you do, He will supply you even more. Unfortunately, most of us are
self-indulgers rarely passing up a want or desire, much less a need. But, in light of the needs
around us, it is important that Christians assess their standards of living. Most of us can
reduce our expenditures substantially without a real reduction in living standard.

9. Get Christian Counseling
It is important to seek good Christian counseling. “Without consultation, plans are
frustrated, but with many counselors they succeed” (Proverbs 15:22). God admonishes us to seek
counsel and not to rely solely on our own resources. Many Christians become frustrated in
financial planning because they lack the necessary knowledge and then give up. God has
supplied others with the ability to help in the area of finances. Seek Christian counselors.

To your financial freedom,
Jimmy

Source: http://www.crown.org/pamphlets/pdfs/FamilyBudgeting.pdf