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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