Organization concerns more than household management and time management. It also concerns money management. We are a nation of debt. People in debt have traded tomorrow’s prosperity to gratify today’s wants. I know what it is like to be a slave to debt. My husband and I were $100,000.00 in debt at one time. We worked hard to get out of the bondage it caused, and now that we are free, we manage our money in a way that we don’t have to worry about it.
I am not an expert at money management, so for some of these categories, I’m going to give you online links to help you. Here are the steps to money management:
Pay Tithes: If you give to God the 10% He requires, He will bless the 90%. You may not believe that tithing is for the New Testament. That’s okay. The New Testament requires more from us than the Old Testament. In the Old Testament, we are commanded not to commit adultery. In the New Testament, if we look at someone with lust, we are guilty of adultery. So feel free to double or triple the 10% if you don’t believe in tithes.
Make a budget. Every household needs a budget to operate. Here are a few links to help you with that.
Save and Invest. Saving and investing is an important part of making a budget. We invest so we have money to live on in the future. Saving helps up have an emergency fund so we don’t have to go into debt and have money for large purchases like vacations, appliance, cars, and televisions.
Get Out of Debt: If you have some debt, do what you have to do to get rid of it. Debt only multiplies over time. Here are some steps to getting out of debt:
Live on less than you have. You will never get out of debt until you do this.
Get an extra job. This might be a good temporary solution to getting out of debt.
Review your bills. There may be some deals you can take advantage of for you phone, cable, insurance, and other bills. Make some calls and check it out.
Pay off the smallest debt first. Do this by paying at least double what the debt is. After you’ve paid that debt, put that money toward the next debt. Keep doing this until your debt is gone.
Don’t sign up for debt consolidation services. Most of them make money off your debt, so they don’t want you to get out from under it. If you decide to consolidate your debt, go to a reputable bank with a low interest rate. I learned this the hard way.
Emergency Debt: Emergency debt where you have so much debt you can’t pay your bills requires more than the previous methods. Here are some steps you can take.
Call each place where you owe debt. Explain to them the situation. Most will work with you if you are honest with them. They may be willing to set up smaller payments or forgive part of your debt.
Consider downsizing your house. If you owe a lot of debt you can’t pay, downsizing might be a good option.
Negotiation: If you have access to large sums of money (equity, retirement fund, vacation home, etc.), make deals with the credit card companies to pay the debt off for a lower amount. Some will only make deals with you if you haven’t paid for a while, so you might have to stop payments. This will temporarily ruin your credit for about two to three years after you pay off the debt, but it is a good option if the only other way is bankruptcy.
Bankruptcy: Bankruptcy is a tempting do over and may be your only option, but if there is any other way to get out of debt, take the hard path. Bankruptcy will ruin your credit for longer than the seven years it shows up on the credit report. Some mortgage lenders will only deal with people who have never filed bankruptcy. There is also the idea that you gave your word to pay these debts, and when you file bankruptcy, you are breaking that word. If you decide you need to go this route, talk to a bankruptcy lawyer about your options.