Mathematics is usually the topic at hand when money is mentioned at the water cooler. You know what I mean. You’ll go to the back on your break and start up an “I-got-a-lower-interest-rate-than-you” conversation, thinking that you’re winning financially because you’re a percentage point lower.
But maybe it isn’t about mathematics. Maybe it’s about behavior modification?
No, come on, you know that credit is the only way to win. I mean, look! You’ve accumulated a billion airline miles and 3% cash back on your grocery purchases! You’ve beaten the system, right?
WRONG.
If the Bible says that the borrower is servant to the lender (Proverbs 22:7 NIV), could the credit card companies really be our servants, providing us with bountiful rewards left and right? Probably not.
I don’t know about you, but I’m constantly having to remind myself that finance is not about mathematics, but rather about behavior modification. Everyone knows deep in the back of their mind that it is better to spend money you’ve already earned than money you THINK you’ll earn later. You’ll end up paying less interest.
When you switch from being bent on mathematics to changing the way you spend, you’ll become more wealthy.
It’s true. I’ve found that I used to spend more with a credit card than a debit card or actual cash. Why? It seemed like I could get instant gratification for nothing down (which prompted me to spend) and, you know, pay for it sometime in the future.
Don’t get me wrong. Mathematics are important, but it’s not everything. Forcing yourself not to have credit cards or loans ensures that you won’t spend money you don’t already have.
Try something new. Change your behavior.
Believe me, you’ll feel a rush of freedom and fear when you cut up your credit cards. You’ll actually have to be living on less than you make. You’ll actually have to pay with REAL MONEY. The pressure of the real world (where you must have the money to do something) will push you to success.
I’m on this journey with you.
I know what it’s like to cut up all your credit cards. I’ve done it. I’m ready to push against the mainstream and rebuke credit. Credit is a drug that speeds the economy up and crashes it in the end. If you don’t believe me, take a look at our national debt. It’s an unsustainable course that will end in broken promises (low or no Social Security benefits when the younger generations get older) and a strain on the value of the dollar.
What does it take to change financial habits?
- Realize that it won’t be easy at first. From the moment you decide to live debt-free, you will experience temptations to borrow. Bear through these struggles, and it’ll get easier and easier.
- You’ll need a radical shift in the way you think about credit. Learn to loathe debt. Seriously, you need to hate it! It steals your cash flow by tempting you with brownie points.
- Actions that force you to stay away from borrowing. Here’s some ideas: take scissors to your cards, create a strict budget, and find others who have lived debt-free and love it.
The point is that you’ll be wealthier by eliminating debt, freeing up your income from payments, and investing.
Stop focusing on finding a new credit card with lower interest and instead eliminate it entirely! Do you dare oppose the mainstream? I do, and I suggest you give it a whirl!
Please leave a comment with your thoughts. I need all the input I can get! We’ll work together to get you on the right financial track, and I know our conversations will greatly benefit my Christian financial walk.
Article by John Frainee: John enjoys wiping out his debt and connecting with others who love doing the same! He officially started The Christian Dollar in January of 2010.
! John wrote two articles for the book: "Budgeting for Groceries" and "How Grocery Stores Work."
