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10 Ways to Save Money
Most families are looking
for ways to save money, and financial consultants by the
hundreds feel that they have the money-saving methods
for which these families are looking. These include
everything from refinancing home mortgages, home equity
loans, and low-interest charge cards to no-down payment
investment property, borrowing against retirement funds,
and no-charge-at-all discipline.
In evaluating the multiplicity of suggestions and money
saving options, 10 suggestions seem to be advised more
than any others: (1) give to God; (2) start
small; (3) put money into a retirement account;
(4) monitor ATM withdrawals; (5) pay off
charges and loans; (6) pay extra on home mortgage;
(7) pay off car loan; (8) open an IRA; (9)
evaluate life insurance; and (10) be
accountable for your money.
Give to God
When we recognize that God owns everything and all
blessings come from Him, our role as managers, or
stewards, becomes evident. Part of being a good steward
is giving back to God a portion of what He has entrusted
to us. It is not that God needs our money. Rather,
giving serves as an external, material testimony that
God owns both the material and spiritual things of our
lives and that He is the source of all our supply.1
Malachi 3:10 is the first place that really directs the
tithe: “Bring the whole tithe into the storehouse, so
that there may be food in My house.” In the Old
Testament, the storehouse was a physical place where the
Jews would deliver their offerings of grain and animals.2
Ideally, the church should serve as the storehouse in
God’s economy today.
Although the tithe is an indicator of our obedience to
God’s laws, He is looking for the right attitude
in our giving.3 If there were not a
willingness to give back to the Lord a portion of what
He has entrusted to us, then giving tithes upon tithes
would be of little use. So, since the tithe’s purpose is
to be a testimony of God’s ownership, each believer
should give bountifully and cheerfully.
Start small
Most financial experts feel that we need to save at
least 5 percent, and preferably 10 percent, of our
income and place it into an interest-bearing, liquid
savings account. However, don’t give up if you’re not
able to put aside 5 or 10 percent. Establishing a saving
habit and saving consistently will eventually add up;
even as little as $5 per pay period will accumulate.
Once saving becomes a habit, set as your savings goal a
maintained savings account of at least three to six
months’ income.4
Put money into a retirement account
If it is available, sign up with your workplace’s
401(k), 403(b), or similar retirement plan in which your
company will contribute matching funds to the plan in
your name. The most common match is 50 cents on the
dollar. If this is the case, you will get an immediate
50 percent return on your contributions.
Monitor ATM withdrawals
Decide how much money you will take out each week and
make it last; discipline yourself to stick to your
decision. Try to decrease the amount withdrawn every
month. If you discover that you have money left over,
deposit it into your savings account.
Pay off charges and loans
With the desire, discipline, and time, anyone can pay
off his or her charges and loans and stay out of debt.
There are four basic steps to eliminate charge and loan
debt: (1) Transfer ownership of every possession to God;
(2) Allow no more debt (no bank or family loans and cut
up the credit cards); (3) Develop a realistic balanced
budget that will allow every creditor to receive as much
as possible; and (4) Start retiring the debt. Begin by
first paying extra on the debts with the highest
interest rates. If interest rates are comparible on all
of the debts, first pay extra on the one with the
smallest balance. After this first one has been paid,
apply the regular payment as well as the extra money
that was going to it toward the next highest balance.
After the second is paid off, apply what was being paid
on the first and second to the third highest, and so
forth.5
Pay extra on home mortgage
You will add equity to your home, reduce the amount of
interest paid over the term of the loan, and reduce the
length of the loan, if you pay extra monthly on your
home mortgage. If you consistently pay $100 extra on a
$150,000 loan at 6 percent, you will save almost $73,000
in interest and shave more than 7 years off the original
loan. If you can’t commit to an additional $100 each
month, just round your payment up to the nearest
hundred.6
Pay off car loan
Interest on your car loan is not tax deductible and the
rate is generally higher than on your home mortgage. Pay
it off as soon as possible by rounding up your monthly
payment to the nearest hundred and then add $50 to that
amount.
Open an IRA
If your funds are limited, open an IRA only after you
have maxed out with your company’s retirement plan. If
you do not have a company retirement plan, open an IRA
immediately.
Evaluate life insurance
If you’ve had the same term life insurance policy for
five years or more, you can possibly cut your premiums
by changing policies. If you apply for a new policy and
get a new medical exam, chances are the insurer may feel
that you are a better risk than fixed insurance health
assumptions indicate, which means that you will qualify
for a lower premium rate.7
Be
accountable for your money
Know where your money is going by establishing a budget
and sticking to it. If the expense is not budgeted, the
money should not be spent. Keep a small notebook with
you to record miscellaneous budgeted expenses.
Conclusion
Debt-free living is still God’s plan for His people
today. The blessings of becoming debt free go far beyond
the financial area. They extend to the spiritual and
marital realms as well. No one who is financially bound
can be spiritually free. And the effects of financial
bondage on a marriage relationship are measurable in the
statistics of failed marriages. Therefore, God’s people
need to make saving money and debt freedom top
priorities in their families
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