In this series we will be talking about how to get out of debt and stay out of debt. Sprinkled in will be money saving tips, ideas and strategies. Listed below are the basic steps we are going to follow to get there. Keep in mind that I have a Christian perspective and Biblical worldview, so my goals may not completely match yours. Further description and game plans will come in the following weeks for each step. Funny thing, I've been planning this for months, the my pastor preaches on it and has almost the exact same steps! So, Pastor, if you're reading this...I had it first! (just teasing!!)
- Establish a $1000 emergency fund and if you use it replenish it immediately. This fund is for things like your refrigerator or stove breaking down or a tree falling through your roof....not for a great deal on a beach condo.
- Pay off all debt except your house...that comes later.
- Establish a fund equal to 6 months to a year of living expenses. Pastor described this one better than me...this is a rainy day fund, and it WILL rain sooner or later.
- Invest at least 15% of your income into retirement savings.
- Establish a college fund for your children. Yes, this comes after your retirement. If you don't take care of you, you can't take care of them.
- Pay off your home early or just now buy a home.
- Any personal wealth built after this is to be given away for the sake of the Kingdom. Missions, church planting, helping out a single mother financially, extra tithing, etc.
Next week we will start working on the $1000 emergency fund.