Undoing Debt and Getting a Budget set up with the Help of God or Higher Power
How to undo the damages of severe debt
learning the basic budget tricks for beginners
There are lots of reason that people have chosen to place there lives Under Construction some of the reason can be for the financial reason to start living a frugal live style, or they feel that there is something missing and they do not feel whole in their spiritual life, saving for long-term goals, or trying to live within your means, or being able to have the opportunity to be a stay at home parent, or being able to recover from a sudden unexpected financial set back .
So being able to learn to make a simple, workable budget or being able to say yes I need you God or Hig power is very important for putting your Life Under Construction.
So this Chapter is going to contain a few simple basics budgeting tips and a few ideas for digging your way out of debt and learn to trust God in helping your journey through prayer and dedication.
Please, Lord, I need your help Digging myself of Debt
Are feeling like your living in a prison, holding a captive to the past financial decisions and the overspending devil. So where are you going to turn to help you get out of the prison your living and to help you free up money so you can live your dream lifestyle and make your dreams come true? With the upcoming section we are going to cover how to reach being debt and prayer to help you ask God to help you.
Step one: Admitting that you have a problem and need God Help
Here is a very important step toward fixing your problems is admitting that you have a problem and need help and realizing you need to actively fix the problem every day and rely on God.
So think about the following statement do they apply to your life is your debt making you feel like there you’re in prison and the feeling of something missing.
So making paid off debt and relying on God should be a high priority or may be facing a financial disaster like your utility shut off notices or losing your home to an eviction notice or forecloser.
So you have little to no saving and you max out on your credit cards
Your juggle bills every month picking which one to pay first and which one can wait until your next payday even if it means paying the bill after the due date and getting a late charge.
You have taken at least one cash advance from your credit cards to make payment on your other bills.
So by doing the math, your debt load including your car loan but not your mortgage exceeds 20 percents of your income. Most Budget can handle about 10-15 percent debt load, but more than that is excessive.is very
Felling like Karama has bitten you in the butt leaving feeling empty all the time.
So if you’re trying to use the credit cards to finance your lifestyles, you’re living beyond your means. Here is a prayer you need to ask to help you ask God for help
Four Psalms to Pray for Help
When you don’t know what to pray, Scripture provides the words for you! Use these prayers from Psalms to guide your request for help from God.
H – “Hear me Lord and answer me for I am poor and needy.” Psalm 86:1
The first step is to let God know that you need him and want His help.
E – “Establish my steps in your word.” Psalm 119:133
Second, ask God for His direction and for strength to stand firm in His promises.
L – “Let your compassion quickly meet our needs because we are on the brink of despair.” Psalm 79:8
We often need help because of our past choices and sin. Ask God to help you focus on his compassion and grace to lift you out of your despair and heartache.
P – “Protect me
God because I take refuge in You. I say to the Lord, You are my Lord, apart from You I have nothing good.” Psalm 16:1
Step 2: Go head to cut the credit cards I dear you
So being able to identify you have a problem is the first step into putting your Life Under Construction in all part of your life and the second step is often very hard and difficult for the hard-core credit card junkies is cutting up their credit cards.
I dare you to pull out the scissors and start the cutting process and yes I know you feeling like crying because how are you going to live without your safety blanket of credit cards but it very possible to achieve through asking God to guide you through the process.
Most credit card company cannot close the account until the account is paid in full, but you have the power to close the account by not using them under any problem that comes your way. Think about this for a minute if you keep using the trust line of a credit card to pay for problems that come up during the month is only keep from achieving a true debt free.
But if you are so far in debt, that paying them off can take several years But after you have dedicated yourself to pay off the debt and you have to manage to accomplish the feeling of freedom is far more rewarding and make it worth the effort to go without the credit cards.
There is going to be a time when you might need a credit card to purchase airline tickets or you might need to rent a car etc. If this is a case your most bank now offers check cards from your bank. So when you get your check card from the bank it like paying your paying cash because the money is taken out of your checking account within minutes.
Here is a little prayer that may help you get through this part of your Life Reconstruction A Prayer for Strength
Lord, I’m weary. My energy is sagging, and my motivation is lagging. And I am so in need of you. I need your strength and your fresh touch to get back on track again. Your Word says the joy of the Lord is my strength. If that’s true, then I need your joy to replace all the bone-tired parts of my mind, body, and soul.
The pressures of life sometimes push me into a corner, rendering me helpless to move forward. A hundred voices call my name, and I feel paralyzed at times to answer, not knowing where to turn. Lord, help me not to quit, to keep running the race faithfully, and to find strength in that safe, secret place of yours, under the shadow of the Almighty.
I need your strength to say no when I’m tempted to surrender to harmful things, or when selfishness clings to my clothes and won’t let go. I need your strength to say yes when cowardice and fear nudge me to deny the convictions of my heart. I need your strength to reach out in love to those both close to me and all around me. When don’t I need your strength, God?
Step 3: Getting ready to set up a frugal budget and learning to live within
So when you are planning to set up your budget, you really need to realize when about what your needs in each category, but do not be too selfish with your self either. ( we discuss a better budget that’s right for you later in the chapter.) You ‘re going to need to tighten your money belt if you are very serious about repaying your debts so that way you have the money to budget for your debt repayment system or plan . The prayer and the tips throughout this book can and will help get in shape to pay off the debt as soon as possible.
Step 4: Stop Putting off the fact of a need to contact the creditors
By finding the courage or strength to talk to the creditors and being able to explain that you have run into some financial trouble meeting your payments. Tell that about your frugal budget and ask them if they be willing to accept a slightly lower payment for a long period of time.
Most of the time the creditors are more happy to help if they can to help you prevent you from filing the bankruptcy and beside a smaller payment is better then no payment at all.
But keep in mind that there are going to be that creditor that are going to play hardball and try and force you into bankruptcy before they agree to a lower payment each month. If you do have a problem please, by all means, contact a credit counseling agency. These agencies have a lot of experience dealing and talking with the creditor and are able to work out a deal for debt repayment problems. So here a really awesome one the National Foundation for Creditor Counseling at (1-800-388-2227) or http://www.nfcc.org. This one network that is nonprofit and does not have a vested interest in making off the debt-ridden consumer.
Are ready you for the Future, Do you have a budget
What comes to mind when you hear the word “budget” I know for me send chills up your spine and it makes my anxiety sky high for year’s I live this way. The anxiety around payday was the worst, but now or days I have a change of heart and a lot of change personal changes. For me, I had to realize that budget allows me to start to be organized and allows me to have some control over something and why not allow it to over saving and spending right. I think of my budget as my best friend and trust me I do not have a lot of friends and I feel this way because don’t you trust your best when they tell you something or help you decide an answer to a problem and if you stop and think about it your budget will help you decide how to spend your money, plan for the future, and it will help you pay off the existing debt, and help you save a few pennies each month by helping you reducing wasteful and all the impulsive purchases.
Step 1: How to categorize your expenses
So at the start of setting up your monthly budget, please start with big categories before you think about breaking them down into smaller expense categories. A good list for budget basic categories to begin with
Housing: mortgage\rent, including repairs, property taxes, cleaning supplies, homeowners/renter insurance, lights, new furnishing.
Food: Groceries, eating out, delivery, snacks, and drink at work.
Transportation: car payment, car insurance, gas, oil, parking tolls, repair/maintenance, public transportation fees if needed.
Medical: Health insurance, out-pocket expenses suck as there deductibles and anything not cover by insurances, pharmacy, eye care, dental
Clothing: new purchase, any dry cleaning, repair
Personal; make-up, haircut related, personnel-related items like razor, shaving gel, pads, tattoos
Insurance: life insurance and any other insurance do not cover under your home insurance, transportation, and medical insurance anything not covered by this insurance.
Education: tuition (fee that you pay for college or a class) school pictures, yearbooks, school supplies, books, or school actives.
Credit accounts: credit cards, store cards, Line of credit through your bank or another lender any other outstanding debt.
Gifts: Holiday , birthday, graduations, wedding, Baby showers.
Recreation: vacations, movies, books for the people who still read, magazines, newspaper, cable, tv, restaurant, sport related
Saving: long-term and short- term goals, as well as retirement
Donations; charities, churches
Making and keeping your family relationships as a priority
Working as a nursing for over 18 years and the most of what I enjoyed most was talking to all the resident about there life and listening there advice about how they never wish to spend most of their time ar their jobs, but they have often said they often regret not having enough time their family, especially when their children were young . We can be related to them because we have worked since we were 16 years at least and when you add children in the mix of. But unfortunately, people are finding themselves with debt that exceeds what they can reasonably afford usually starting looking for way’s to increase their income.
So their advice is really simple so instead of looking for a part-time job and working a 100 hours a week in overtime I know that sound a little crazy but as a nurse, there were times where I worked 60 hours or getting involved in a getting rich quick scheme. All you need to do is look at your budget for a way to cut back on your spending.Decreasing your spending is usually a lot easier than increasing your income. Also, you will not sacrifice time with your family in exchange for paying your debt.
So if you are willing to try cutting and tightening your money belt, you can really pay off your bills and watch you little growing up.
So look at it this way when you decide to set aside of money each month for those yearly and quarterly payment that often has a way sneaking up on you when you least prepared for it. So what if you hope taxes are $1,200 so how would you pay that number at a lower affordable price. Well, its simple math just divides that number by 12 and the answer is $100 per month so that way it a little easier to pay once a month.
So keep in mind that in each general budget category, some things are very important always ( the rent/ mortgage, the light bill, food to eat ) but the other items are extra ( new computer or cell phone, gifts, eating out ) from the list of general budget items, develop other budget lists, one for the most important and the other extras. ( This part is all you because I can not tell you what is important or extra for you )
The reason I choose not to make this list for you is that there are people who love to eat out regularly because of there job related so dining out is a huge part of there budget. Also, there are people who believe that giving to charitable events is extras while their friends consider it non- negotiable because of there religious convictions.)
I mean you get the point right so after you divide your expenses into the two lists, so by looking through both your most important list and not so important list to find the flexible budget items like clothing, groceries, or other food-related expenses where you can see where to cut back using tips and advice throughout out this book or talking to someone who has lived a frugal godly life . So make a star or a smiley face next to the area where you can be flexible so that way you can have an easier time finding it.
So the extra and flexible budget items are the best area to look at when looking at your budget keep in mind that you always need to pay rent/mortgage but buying coffee on the way to work is not a must have or important bill that you can do away with if need to catch you up on the bills. I am sure by now you get the idea of how just looking a the extra items you want in your budget you are able to cut back on. Also when you are ever feeling like running or giving up on your financial journey here is a little prayer written by Lynn Robinson.
I surrender my financial affairs and concerns about money to your Divine care and love.
I ask that you remove my worries, anxieties, and fears about money, and replace them with faith.
I know and trust that my debts will be paid and money will flow into my life.
I have only to look to nature to see proof of the abundance you provide.
I release all negative thoughts about money and know that prosperity is my true state.
I commit to being grateful for all that I now have in my life.
I learn to manage my finances wisely, seeking help where needed.
And finally, I ask you to help me understand my purpose in life and to act on that purpose with courage and strength. I know that prosperity will come, in part, by doing the work I love. Please help me use my skills and knowledge to be of service in the world.
Thank you, God. Amen
Step 2: Making a guest of what you spending
So grab your checkbook or bank statement and any other receipts or records you’ve kept over the past few months because you are going to track how much money you are actually spending on things. So please take the next 30 days or the next month to start to keep track of detailed journey of all your spending, and yes that includes the cheap things like your daily newspaper or that cup of coffee you always buy on the way to work. I mean the little expense really fo add up to big money when they’re made of every day , I know these smaller out -pocket purchase that is made of cash never really show up in the bank statement so by writing them all down helps make you aware of where the cash is leaving your pockets in your life .
So after you have discovered where all your money is going and then you can reevaluate your written budget lists if your actual spending differed from your guested budget.
Step 3: Add and Adjusting
Now that you have made your two budget list the most important and the extra, so look and see if your spending habits are keeping you in the red.
So that do some simple math add up the important list and the extras list separately. Then subtract the most important total from the monthly income. And if you have money left over, subtract the extras total from that amount. And if you have any money still left over then maybe it time you start looking into investing or a saving account and if you are like me and have no idea where to start then I suggest you talk to your bank about some suggestions and if you like then you set up appointment to talk to a financial planner to help you set up a plan .
What happens when your extra start planing you in the negative numbers still so how to fix it by looking at places to cut back on like your Sunday newspaper or reduce your eating out from once a week to once a month are just a few examples. Also, it going to give you a chance to cut back on the extra list that way you can set your priority in your financial repayment. The best part of this book is the fact that is design to helping you save and helping you adjust and rely on God that way when you see how much you need to cut back you know where to turn. The only thing I ask is that you never give up hope in living within your means.
The envelope system
My family and I decided to try the envelope system budget i never heard of it until a friend and a lot research on the web so I was very interested in the whole idea of writing on an envelope and putting the cash in it for things like bus fare, gas, and oil, food for the house, lunch money for children school or even your own work, toiletries etc but we do not really use this system for paying our utility bills that need to be paid by credit/debt .
This system had made all the difference in the world for us because we could actually see how taken a few dollars out of the month to pay for a movie is in a way stealing money from your budget. For me when my money is just figured in the bank statement, taking a little here and there for the non-budgeted items is easier to do. So by taking cash to the grocery store make a lot easier to shop because I have learned to be careful and plan my meals more frugal, and put stuff back when I am over the budget amount.
A simple tip for taking care of your budgeting goals for the regular bills os to pay for each budget items each time you get paid.
So our light bill is due every month but I kinda have a unique income because I am very blessed to have my children father’s pay their child support without trouble and sister Serena as a roommate and yes she pays rent and I work as a cashier at the huge chain store. So I take the bill and split it up in smaller payment that way it a lot easier to come up with the money each payday then one lump sum.