3 First Steps to Financial Freedom

You may be wondering what some of the most important steps are when you first start your quest toward financial freedom. The answer is obvious, but doing these three things is seldom accomplished and often overlooked. Are you ready? These are profound:

Pray

That’s right, you need to pray. Everything comes from God, and we must seek counsel with the one who made us to develop a game plan. I’m convinced that most people in America just jump right into the mathematics of it all and don’t pay any attention to the one who controls it all.

Anytime you’re making a change, you need help from above. Change is not an easy thing, and many are scared to do transform their lives. You’re about to step out in faith, so get serious about prayer and be specific in your conversations with God.

Destroy Your Credit Cards

More broadly, eliminate any more temptations to borrow.

Reward points seem like a great idea, but think about it . . . why would credit card companies offer these in the first place? The simple answer is because they know that you will most likely go into debt and owe them interest. So don’t play their games. They know what they’re doing.

Also, learn to loathe debt. Too many people I meet are under the impression that debt is some kind of tool to get you where you want to be in life. I disagree. Having cash flow is much more valuable than debt. I’m not going to pay a premium (interest) for goods and services, I’m just going to pay what the item costs and any associated taxes. You have to get angry at debt and run to get out of it.

Remember that a good start is to remove the temptation to borrow. So go cut up your credit cards right now!

Create A Budget! Seriously!

Okay, this one is blandly obvious. You need to figure out how much money you have coming in, and how much you have going out. Create a large gap between the two and write a budget! Start by writing a list of categories and estimating your expenses. Once you know your net income, see if that number is higher or lower than your expenses. Attempt to lower your expenses significantly below your income, and use the extra money to pay off debt, build an emergency fund, and invest.

You’ll find that the longer you do a budget, the easier it becomes. Trust me, your first budget is not always easy to write. If you’re normal, you probably have no clue how much you spend on groceries or eating out. Estimate if you have to, or look at your bank statement. Stick with it, you’ll be a budgeting pro in no time!

Now you’ve laid a solid foundation. You need to consistently follow these rules and get yourself on the right financial track. If you do, you’re on your way to financial freedom! But it’s a long road ahead, so stay tuned.

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John Frainee

John officially launched TheChristianDollar.com on January 1st, 2010 with the intention to provide an excellent financial resource for biblically-minded individuals and families. Influenced heavily by Dave Ramsey, John started researching how he might better handle his money and help others in the process. John enjoys reading, writing, playing with gadgets, and spending time with his wife Courtney.

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