#3 Make sure your money, especially credit is working for you!
One of the greatest mistakes that Ashlee and I made as a young couple was not monitoring the type of credit we had, and how to make it work for us. In addition, we did not know a lot of about investing and did not pay much attention.
In all reality, we both have a very good knowledge base built around both, but thought it would come, and the time woul d be okay. We had a few credit cards, and some medical debt. Not much different than the average American right?
Most American’s today carry a substantial amount of debt including: credit cards, cars, boats, credit cards, medical debt, and all other sorts of responsibilities. The problem with financial burdens such as debt is that it becomes very easy to be weighed down with life. I often say when preaching that we want to see those in debt be set free, and to live a life not burdened with life.
Early in our marriage, we were burdened with life. Too much debt, not enough income, and trying to live a little larger than we should. I have heard good biblical teaching on finances state that “it is not how much you make, but how you manage it.” I think it is true in 99% of cases. At times it was definitely true for us, and at other times we had nothing to manage. Even in those times we could have made a lot of different choices that would have allowed us to manage our money.
Furthermore, we spent those early years spending every dime we made to keep on keeping on, if you know what I mean. We did not save or invest a lot. If I had it to do over again, I would have invested a little more into 401ks and a lot more into a Roth IRA before we had children, and could afford to save more.
The overall take away is that I wish I had known that credit should always work for you, and your money should be working for you. Neither credit nor money should be working against you!
Too many couples today are drowning in debt, and credit cards with no real end in sight! I personally have a little credit card debt that I acquired to help build a credit score, since we had no debt for five years. We are using the credit to our advantage.
My goal for 2009 & 2010 is to pay off all debt except for our home. Then in 2011 I want to start a 3 year plan to reduce our mortgage to 25% of the original purchase price. It would allow me to have paid off my 30 year mortgage in 7 years.
Now that I am smarter went to business school, and grew up a little through a few hard knocks in my finances and marriage, I think that I am finally making my credit and money work for me, instead of against me!
Check back tomorrow for “understanding your path”
May 6, 2009 at 1:56 pm |
Yes for sure! Good tips. A person’s credit is sooo important. You need revolving credit to increase your score. Without any debt you won’t build your credit score either, but have to make sure to live within your means. It always helps to think, “Why do I want this or that?” Is it to impress other people? “Do I really NEED that?” If I ask myself that I usually decide not to get it. Do I really need new shoes? No. And again, who cares! I think we get too hung up on what other people “think” and it really holds us back. Plus, it’s not our money anyways. We are managing God’s money. If we can’t do that then how can we even manage ourselves? Ouch!
May 6, 2009 at 8:31 pm |
Hello Kevin, I like your blog, it’s very informative.
Well it’s a good thing that you’re able to manage your finances. I also believe on this “it is not how much you make, but how you manage it.” – we just have to be smarter on our decisions, and since we’re in a relationship, talking about finances together as a team helps a lot. It could help your relationship with your partner grow deeper, and your trust for each other also grows.
I’ve been there, and it’s really not easy.
Thanks for sharing this to us.