Proper Care and Handling of Your Finances

Has anyone ever asked you this question: If resources were not an issue, what would you like to accomplish in life?

It's a great question that seeks to discover your passion and goals. It's a question that challenges the questioned to think big, and to imagine the possibilities. It is a great motivational question.

But, unfortunately, it's also a pipe dream without the resources. And, all too often, the great dreams we have will never see the light of day, because we don't have the finances to pull it off.

According to the Federal Reserve, Americans have a whopping $2.5 trillion (with a T) in consumer debt. That averages out to $8,062.48 per person, including infants and children. Note, that this isn't the national debt. This is personal debt.

Each dollar of debt that loads you down translates into a lost opportunity. You can never achieve your full potential as long as you owe money to someone.

The Bible says that the borrower is a slave to the lender. While our society doesn't really have slave masters throwing the whip at those who borrow money, it can seem just as punishing when the lenders start calling wanting their payments.

To achieve financial freedom, and begin financing those dreams, you must get out of debt. There are several debt plans out there. A couple that I like are Dave Ramsey's "Seven Baby Steps" and Crown Financial Ministries' "S.A.L.T. Plan." Every good debt plan starts with the B-word -- budget. Without tracking your spending and planning future expenditures, you will never be able to stop the debt cycle.

After you begin life with a budget, you need to come up with a plan to pay off what you owe. This starts by cutting back your spending in drastic ways in order to create enough room in your budget to start paying off the creditors. You'll be able to relax your spending hiatus after the debt is gone, but you'll still need to keep your spending below the amount you take in.

A good financial plan will include room to save a good portion of your take-home income. You can then apply some of that extra to your dreams while saving the rest for your future.

You will need to throw everything you can at this debt to get it gone. That includes inheritances, tax refunds, holiday and birthday money, etc. You will also need to avoid the temptation to break your debt-reduction plan for the occasional splurge.

Trust me, I know what I'm talking about. I dove into debt by convincing myself I needed a credit card for a weekend getaway. Then, after I struggled to pay off the debts incurred on that card, I later did a nose dive into another batch of debt. My wife and I eventually got out of debt by applying a large sum she had received.

We have been tempted to go back into debt for a few purchases, but our spidey-sense goes off every time we get close to debt. We both get a gut-wrenching, sickening feeling that reminds us how much we don't want or need debt.

So, get out of debt. Stay out of debt. And, start saving for that future.