Our family’s budget has been continually worked and re-worked over the past several years. We are a typical American family in most respects; We have a mortgage on our home, use two vehicles, hold credit cards, have school loans and are trying to raise a family. It seems that every time we try to hammer out a budget, we have a change in our financial circumstances which makes our budget void.
Recently, a good friend sent me the Crown Financial Ministries Money Map as well as the Get Your House in Order workbook, by Howard Dayton and Chuck Bentley. Over the years, I have heard the radio program by these gentlemen several times on Christian radio and have found their financial advice to be very helpful, but I never took the next step to order the Money Map and see how their Biblical approach to finances could give guidance to our family.
The Money Map is a great item for the visual learner. It is approximately the size of a road map and is high-quality, colorful and attractive in appearance. The map lays out 6 steps to financial freedom. They are:
Destination 1- Emergency Savings
Regardless of where you are financially, if you are living pay check to pay check or have large credit card debts, establishing an emergency savings fund is the first thing you are called to do in this program. Even if you are trying to get ahead on other bills, pay the minimum payments until you have $1000 set aside in an emergency fund.
Destination 2- Credit Cards Paid Off
Many Americans carry credit card balances. While credit cards can be a useful tool if you pay them off each month, they can easily spin out of control when you charge more than you can pay. After you have established an Emergency Savings account, focus all of your financial attention to getting rid of all of your credit card balances.
Destination 3-Consumer Debt Paid Off
After you pay off your credit cards, it’s time to pay off all of your other debt, aside from your mortgage. Student loans, car loans, furniture store bills, repair bills, medical bills- they all need to go. Also, increase your Emergency Savings to the amount equal to three months of living expenses while at this destination.
Destination 4- Save for Major Purchases
If you are not careful to plan ahead for purchases, you will easily find yourself back at Destination 2- paying off a credit card you used to pay for repairs or a new purchase. While at Destination 4 you will learn to put money aside each month for the time you need to buy a different vehicle, purchase new furniture, or even add an addition to your home. This is also the point at which you should begin saving for retirement, your children’s education, or for the funds to start your own business (if you desire.)
Destination 5- Buy Home and Begin Investing
If you have been renting up until now, it is time to purchase a home. Stop throwing your money away on rent and lease agreements. You are now in the financial situation to have your own home. Immediately begin pre-paying your mortgage and investing money wisely.
Destination 6- Home Mortgage Paid Off
Don’t believe the lie that it is better for you to carry a mortgage than not. Paying off your home will provide you with financial stability well into your future. Most likely, owning your home will allow you to be comfortable and worry free throughout your retirement. Paying off your home is a huge step in financial stability and will probably prove to be your largest asset. During this stage you also have enough money to fund your children’s education (to the extent you wish) and form a detailed estate plan.
One of the fundamental principles taught throughout the Money Map is that of giving. Just because you are trying to get out of debt, does not mean that you should not give your tithe (10%) to God and beyond that, to others in need. Giving must occur continually- as soon as you decide to start handling your finances Biblically.
Finally, the Money Map is also interactive as it provides places where you can list the date on which you accomplished each destination, along with what you did to celebrate it. This tool can be placed on a wall or kept with your financial documents in order to provide extra incentive and reinforcement to accomplish your financial goals. Order your own Money Map by visiting www.crown.org.
