Though simple in concept, budgeting can be a daunting task in the eyes of many people. Keeping track of where your money goes may seem like a chore that is time-consuming and difficult, but it doesn’t have to be this way. Budgeting and keeping track of expenses can be as simple or complicated as you want it to be.

A budget is the foundation of your finances.

Why Keep Track?

Keeping track of your expenses will show you where your money really goes.

Do you know how easy it is to spend an excessive amount of money on unnecessary items? If you get a mocha or latte at Starbucks twice a week for the year, you’ve spent well over $500 on coffee alone.

Removing the Unnecessary Sink Holes

Almost all of us have opportunities for improvement in our budgets. Once you have created your budget and realize where you are spending the largest amount of money each month, you will be able to think about cutting down unnecessary costs that are dragging you down.

Perhaps limiting yourself to one coffee shop trip a month (and making your own the rest of the week) is something that helps you have more cash for other important things. Or maybe you realize you are pumping money into cable TV each month, when you are barely home to enjoy it. Or maybe you find that the money you spend going out for food more often than not would be less costly if you chose to cook at home a few more times a week.

If you aren’t willing to take a good look at where your money goes, then you will continue to spend the same. Saving up, paying debts and living within your means are facets of a solid steward. Don’t squander what you’ve been given–be responsible with it.

You Can Still Have Fun

This might sound like if you keep track of where your money goes then you will feel guilty for having any fun, but that shouldn’t be the case. Having a special column in your expenses for entertainment is a good idea, but this should be the lowest cost of the month or a treat for when you settle your first debt on your Christian debt settlement plan. Entertainment would include TV, desert and coffee, shopping for fun and doing other entertaining things like going to a basketball game or concert.

Getting Started

Whether you use a piece of paper, an excell spreadsheet, or software you find online, the important thing is to take action.

There are programs out there that offer to take your card spending and filter it into a readable format of expenses. You can also do it yourself, but the most important part about this is that you start immediately and you keep up with it!

Each week you should enter your costs that you have paid out and any money you have brought in. Keeping your receipts for the day until you can enter them into the computer will help you not forget what you’ve spent money on.

Your budget is going to be the foundation of your finances. Take the time to create an honest budget and you will be well on your way to achieving your financial goals.

Social status is a mysterious element of our society. All of us feel its presence, but few of us understand it. The Encyclopedia Britannica describes social status this way, “The relative rank that an individual holds, with attendant rights, duties, and lifestyle, in a social hierarchy based upon honor or prestige.” This “prestige” of course is relevant to your own personal social circle. What might not be looked upon as social status in some circles may be very important to social status in other circles.

In our “middle class” society, social status is most often defined by our education, occupation and possessions to varying degrees. Our homes would probably be the top possession that can influence our social status, but coming in at a close second is definitely our vehicles.

From the moment the vehicle was invented it has been a symbol of just what kind of person you are in the eyes of the people around you. In the early years only the wealthy, modern families had a “horseless carriage.” The same judgments, however, are still being passed today on individuals who perhaps do not own a car, and more often judgments are passed on you based on the year, make, model and condition of your car. This pressure springs us into the “vehicle trap” where we place much too high a value on our vehicles, an emotional value, that will often come at a major financial expense.

This is a problem for the Christian who is attempting to get out of debt or reinvent their financial life to reflect more control and security. Why is this a problem? It is a problem because the root of this entire social status issue has always been pride and our vehicles are a daily reminder of our social or financial status. Most people are familiar with the twinge of embarrassment at some point in their life of having to drive or be driven around in a car that they felt was “beneath” them. That feeling was your pride revolting against something.

“Pride goes before destruction.” Proverbs 16:18

Nowhere is this passage better reflected than in our finances. Pridefulness can cause certain financial destruction when you allow your emotions to influence your spending decisions.

It has become a norm in our society to have monthly payments on our vehicle. For most purchases in our lives, we know that we should save the money and then buy the item. Mortgages and vehicles have become an exception because of their high cots, but in the case of the vehicle it is largely because we are living beyond our means.

Car payments are, in most cases, one of the most unnecessary of all debt payments that individuals strap themselves to. You may say, “I must have a car.” That may be true, but must you have a car that was so expensive that it required you to take on payments? In many cases the answer is no. You chose a car that was above your financial means because it was cool, it was fast, it was pretty, it would make people say, “Wow, nice car.” People want to hear this, and they want to hear it because of their pride.

Affording a nice car is entirely different from strapping on debt for a nice car. If you are already making debt payments on other items or if you have set as a goal for yourself to be debt free, then there is no excuse for taking on an exorbitant car payment when there are cheaper vehicle options available.

Four Surprising Benefits to Avoiding Car Payments

Savings on Interest

Okay, this one isn’t so surprising in and of itself, but the numbers are! According to Edmonds.com, 55% of loans taken out in 2012 were for terms longer than 60 months. That added anywhere from $2,115 to a whopping $5,548 in interest charges above the purchase prices of the vehicle.

Lower Insurance Premiums

When you take out a loan for a vehicle vehicle, the lender holds a lien against the car. You must then meet lien holder insurance requirements that are often above what your coverage would normally entail. Purchasing a vehicle outright eliminates that additional expense.

Opportunity for Personal Growth

If you battle with the desire to keep up with society’s expectations of what kind of car you should be driving, purchasing a car that might not be quite as shiny as the new ones on the lot is an opportunity for personal growth. A shift in your priorities can help you become a more humble individual.

Freedom

This one is especially true as compared to the alternative option of leasing a vehicle. If you own your car outright, there is no concern for how many miles you will drive, or how long you must keep the vehicle. If you find your situation has changed a year after buying the car, you can sell it or trade it in for a new car. With a lease you might be stuck with the car longer than you would want. With a loan, you might be upside down and be unable to trade it in without creating financial pressure.

Ask yourself these questions if you are in need of a vehicle right now:

How much cash do I have on hand to purchase a vehicle?

If you can pay cash for a cheaper, older car do so! This is the wise financial choice.

If I must make a payment which vehicle will have the lowest payment?

Think of this car as a temporary car. This is your “getting out of debt” car. Once you are financially free you might be able to upgrade a bit with cash!

If I knew that no one at all would ever get to see my car, which car would I choose?

This will help you evaluate whether you are functioning off of prideful emotions or practical need.

Buying a vehicle is a major purchase. Take the time to review your budget and carefully evaluate your financial situation before making the decision to take on a monthly payment when it may not be necessary.

It is a fact: more Americans are in debt today than ever before. According to Forbes, consumers saw their credit card debt jump to $856.5 billion as of May 2013, and credit cards are only one source of debt that people carry with them.

While financial troubles can certainly be the result of a difficult economy, let’s face it, we all play a role in our own finances. Short of a sudden job loss or a financial emergency, most financial struggles are a result of our behavior. Let’s take a look at what might be keeping you in debt.

You Are Relying on Credit Cards

“Suppose one of you wants to build a tower. Will he not first sit down and estimate the cost to see if he has enough money to complete it?” – Luke 14:28

As tempting as it can be to put purchases on a credit card, resist doing so. Use them only in case of a true emergency. An example of this might be if your vehicle breaks down unexpectedly and you need to have it towed. Ideally, you could rely on your emergency fund to cover those costs, but if you aren’t there yet this is when you will want to reserve using those cards.

If you often reach for your credit card on impulse, leave your cards at home when you shop. If you see something you want and you do not have the cash budgeted for it, do not buy it. Go home and think it over for a few days. If you still want it then, make a plan for the purchase and save up the money for it.

You Are Over-Complicating Your Life

“A pretentious, showy life is an empty life; a plain and simple life is a full life” -Proverbs 13:7

We live in a world where more is better, and that spills over into the way that we live our life. So many of us try to add so much onto our list of things to do that we cannot enjoy the simple gifts that God has provided to us.

Rather than trying to have your child add take on another extracurricular activity (which often cost money), set aside a day or two each week to go to the park as a family. Take some time and use some creativity to find some ways that you can simplify your life, you will often find that over-complication comes at a cost.

You Are Not Living Within Your Means

“Keep your lives free from the love of money and be content with what you have, because God has said, ‘Never will I leave you; never will I forsake you.'” – Hebrews 13:5

These days, we are all bombarded with images that scream Buy! Buy! Buy! As a result, it is incredibly common to fall into the materialism trap, though. Living in a bigger house or driving a new car will not make you happy in the long term. It is likely to only make you want more stuff.

If you are tempted to ‘keep up with the Jones’ by buying the latest and greatest things other people have, a shift in priorities may be in order. Coveting another’s possessions only leads to grief and debt.

This is certainly not to say that we cannot have nice things, we need only be sure that our priorities are in order. When considering a purchase I will often ask myself if it is going to bring added fulfillment to my life, or allow me to spend enjoyable time with my family. Not all purchases will fall into those categories, but do your best to make sure it isn’t going to pull in the opposite direction.

If nothing changes, nothing changes. Follow the basics of Christian finance and apply God’s word, and you too can enjoy a debt free life.

When you’re trying to get out of debt any extra little bit of cash helps the cause.

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“Blessed are those who find wisdom, those who gain understanding.” Proverbs 3:13

While we are huge proponents of avoiding the use of credit cards in any fashion, we realize that is not what many of our readers choose to do so we’ll take a look today at the responsible use of credit cards.

A huge push by the marketing campaigns of credit issuers focuses on the points you can earn by using the advertised card. Those offers often seem way too good to pass up. After all, if you plan on spending the money anyway, why not earn points you can use towards other things?

In order to be wise in your decision making, there are a few questions you should ask yourself about any credit card that offers you points.

1. Do you tend to carry a balance on your credit card?

If so, the interest you will be paying will quickly outweigh the benefits of the credit card points.

2. Are you paying more for the annual fee on the card than you are receiving in point benefits?

For example, if you racking up $50 worth of points but your card has an annual fee of $60, you’re better off without the card.

3. Are the points good toward anything you need?

Some credit cards offer points that can be redeemed in the form of a discount in particular stores or in trade for things in their catalogue. If you don’t need any of the things you’re being offered, the points are not worth their while.

4. Do the points expire?

It can take a long time of point accumulation to get anything of value in return. By the time you have racked up enough points it is possible that they have expired.

5. Does your debit card already offer incentives?

Many people use their credit card on a regular basis in order to earn points. However, they may be passing up the opportunity to use a debit card that gives them an instant discount — like the Target debit card. you may have better incentives already available, without the annual fees and interest rates of credit cards.

6. Does your card have spending requirements before they begin awarding points?

If so, you may find yourself using that plastic card even when you don’t need to, or justifying an unnecessary purchase since you have to hit their minimum spend limit.

We realize that credit card incentives are very appealing, and sometimes they really do make sense. If you are a disciplined person and can find a card that offers points toward something you regularly use, pay that credit card off in full every month, and take advantage of the points you earned before they expired, great! However, that tends to be more the exception than the norm. It is just like the casino and gaming industry, some will absolutely win, but the entire system is designed in the favor of the credit issuer.

If you must use a credit card, be wise as you choose a card and don’t let incentives that appeal to your emotions overrule a sound decision.

Whether you are thinking of buying a homestead or considering buying property as an investment, the option of purchasing a foreclosure has likely crossed your mind. Understanding the pros and cons of buying foreclosed property will help you make better decisions.

Bankers and realtors use the term “distressed property” to describe homes that are either already involved in the foreclosure process or that are subject to repossession soon. There are three general types of distressed property.

Foreclosed

Foreclosed property is owned by the financial institution that issued the mortgage. This means that homeowners stopped making payments and the bank went through the legal processes to reclaim the property.

While selling prices can be significantly less than market value (30% to 85%), buyers must be cautious.

Usually when an individual has gone through a foreclosure, they had other financial obligations go awry as well. Because of this, some foreclosed properties may have liens attached to them from other creditors.

If the property is part of a bankruptcy filing, settling the purchase could take years to resolve.
A few states allow borrowers to pay the full balance at any point prior to auction, effectively stopping the foreclosure.

If you are considering a foreclosed home, verify the home is unoccupied, free from liens and not subject to any settlement agreements. Of course, if the price is substantially below market-value, you could make an offer, providing you have protection against loss if the property is pulled from the market for any reason.

Auction-ready

After lenders satisfy all legal requirements for foreclosure, homes go on the auction block. Typically the auction is held on the court house steps at the county seat where the home stands. Starting prices may be fixed or open.

A fixed starting price means that the bank sets a base price that is the lowest amount they are willing to accept. This might be the balance due on the original loan or a discounted figure based on property condition.

An open bidding platform means that the bank is ready to get the property sold and is willing to accept the highest bid offered — even if it does not cover the loan balance. Some banks do this because the state where the property is located allows banks to recover the difference through a judgment against the prior homeowner. Sometimes the property needs extensive repair and it is a financial liability to the lender. In either event, these are often very good investment opportunities.

Buying property at auction means that you have cash in hand, a certified check or a letter of credit from your bank. Loans are generally not accepted on this type of purchase.

Pre-foreclosure

When a bank notifies a homeowner that foreclosure is imminent, but not in progress, this is called pre-foreclosure. Homeowners can legally list the property for sale themselves or list with a licensed realtor, as long as they disclose the mortgage status to potential buyers.

Finding property for sale in pre-foreclosure status generally means you should be ready for a quick closing. Sellers who want to avoid bankruptcy or repossession are usually willing to discount the property. Financing options for homes in this category are similar to other on-the-market homes. Most qualify for FHA, VA or Conventional loans if they are well-maintained or need minimal repairs.

It might seem harsh to haggle for a bottom-dollar price when someone else is struggling financially. The best way to approach this type of transaction is with the understanding that it can be beneficial to both parties.

Things to Keep in Mind

1. Inspect all property before you bid or make an offer, extensive damage must be repaired before FHA, Conventional or VA loans receive approval.
2. If you need financing, check with your lender to find out what type of loans are available for distressed property.
3. Understand your state and local laws about occupancy. Some states do not allow eviction if a tenant has a current legal lease.

FaithWorks Financial provides counseling services for debt management and financial planning. If you are trying to get your financial house in order before you can purchase a home, contact us for a free debt relief consultation.

For most families, food and grocery expenses are the second biggest line item in their budgets after rent or mortgage payments. While the budget bite from grocery shopping can be depressing at times, the good news is that there is a lot of room for creativity and savings for disciplined shoppers. One of the greatest advances in budget-conscious shopping is finding its way into America’s kitchens with great results: shopping for groceries online can rescue an out-of-control food budget.

It is well known that the internet provides opportunities abound to comparison shop for necessities like clothes and insurance; using the internet to find grocery bargains is a logical next step. Most grocery store chains offer online shopping options with free in-store pickup; a few even offer home delivery for a small fee. Wal-Mart and Amazon.com offer free home delivery, and allow you to combine grocery purchases with other items from the store. The end result is a great addition to any debt relief program- saving money by buying groceries online.
Shopping online for food makes sense for many reasons, especially for families trying to stick with Christian debt management principles. When you buy groceries online, you eliminate pricey impulse purchases. You buy only items from your list. This saves money and helps you stick to healthy choices. Eating healthy on a budget is easier using online shopping tools. Many grocery stores offer meal planning and recipe tools right on the site: You choose your menu for the week and the corresponding grocery items are automatically loaded into your shopping cart.

Most grocery websites list their weekly specials so you can buy from the store with the best prices for the groceries you need that week. Some even feature economical recipes using sale items to help you maximize grocery savings.

Shopping online allows you to compare grocery prices on the things you buy regularly so you can always get the best available price without driving to several stores. Big retailers like Wal-Mart and Amazon give you access to economical brands and product sizes that might not be available to you at your local stores.

Ordering groceries online takes the guesswork and surprise out of your food bill. You can see what your choices are costing before you purchase them, giving you an opportunity to make changes to keep costs in line with your budget.

To start harnessing the Internet for grocery savings, begin with your local grocery chains’ websites to see what’s available. Browse the grocery offerings at Walmart.com and Amazon.com to compare prices. Other sites like ShopFoodex and NetGrocer have frequent specials offering favorite foods at steep discounts and usually offer a credit toward your first order. It may take a few weeks to get used to buying groceries this way, but you will find, with practice, that online grocery shopping can be your budget’s best friend.

With the hectic daily grind that has become a part of so many peoples daily routines, it is no surprise that eating out is one of the top budget breakers. When you are running around town and have your kids in the car howling about how hungry they are, a quick pizza run may cause the kids to cheer, but your budget will not.

Last minute dining out decisions can wreak havoc on a carefully planned budget or Christian debt management plan. For families attempting to eliminate debt, this is an added expense that can kill your dream of being debt free. Eating out is such a sneaky expense, because we can always justify needing to eat. You must consider however, food purchased in a restaurant is almost always significantly more expensive than the same type of meal prepared at home.

Why Do You Eat Out So Much?

Pinpointing your motives behind your actions is the first step toward changing those actions. Many individuals cite eating out as more convenient than cooking at home and that it saves time. Forbes author Laurence M. Holland points out that when you calculate the travel time, waiting for a table, waiting to give your order, waiting for your food, and then waiting for your bill you ultimately save no time at all. Not to mention the fact that when you are eating at home, you can also be multi-tasking on other things such as catching up email, or helping your kids with their homework. Eating at home ultimately saves time.

Other individuals may say that they eat out so often because they just don’t like to cook. This is a situation where you must evaluate how important it is that you be successful with your Christian debt management program. If you are truly committed to debt elimination, then doing something you don’t necessarily like to do should not seem like that big of a sacrifice. The truth is people eat out a lot because it is less work for them. This, however, is not a good reason to endanger your budget or your path to being a debt free Christian.

How to Ensure You Eat At Home

Make a Plan

Planning to eat at home more often takes a little organization. You must have a plan. Taking thirty or forty-five minutes once a week to make out a menu and a grocery list will save you a lot of time and money later on. Make sure your menu is specific and that your grocery list will accommodate all your meals. If you are new to cooking, take a look at websites such as allrecipes.com or the Food Network for ideas and inspiration, or do a search for “budget friendly meals”.

Stick to your list

Now that you have your list put together, it’s time to go shopping! If you made a careful menu, then the items on the list will feed your family for that week. You will not have a need to buy other items. Many parents find that bringing the kids with them to the grocery store often leads to overspending. If going alone will ensure you spend less, then go alone.

Plan for eating out.

The fact that you are going through a Christian debt management program does not mean that you cannot still enjoy a meal out on occasion. If your budget has the room for it, set aside some money for eating out each month. Every situation is unique and your personal goals are going to determine the frequency at which you can enjoy a meal out. You may find that you can actually budget for a pizza night each week. We suggest that you are careful to be eating out because it was planned and budgeted rather than because you weren’t sure what else to do for dinner that night.

If you follow these suggestions, you can prevent one of the top budget breakers from getting between you and your financial goals.

Getting out of debt is a big job and requires a lot of sacrifice if you are serious. When most people begin their Christian Debt Relief program they just assume, “Well, no fun vacations for us for the next five years.”. While there will be many things that must be sacrificed, fun does not have to be one of them. You and your family can still have fun, even without an expensive yearly vacation. Here are a few alternatives to traditional family vacations that will save some money and make some lasting memories.

Kid’s Choice Week

If your kids are accustomed to taking a week-long vacation to somewhere exciting, present a “Kids Choice Week” as an alternative. Explain to your kids you will not be going on vacation, but instead, for an entire week every evening will be kid’s choice. Your kids get to choose the meal, the movie, the game the activity. Give each child a night that can be entirely their own to plan for the family to spend at home together. Your kids will love the concentrated time with each other and the feeling of being in charge.

Staycation

This is becoming a much more popular alternative in recent years. If you are in a position to take some time off work, plan a staycation. This is a great option for families that have a little money for a vacation but not really enough for travel expenses and hotel costs. Spend some time finding the most fun activities and attractions that are within driving distance of your house. You may think there aren’t any, but you’ll be surprised what you find once you start looking. Each day of your planned “staycation” you and your family will go experience a different place or activity. It could be an amusement park, museum, hiking trails. A week full of day trips. If you have really young children, you would be shocked at how much fun they might have just staying at home and getting to play with you for a few days. This is especially true for parents that work a lot. Just you being home will seem special to them.

Freebie Weekends

If you really have no extra cash, and you don’t think it wise to take time off from work, plan a month of freebie weekends for you and your family. Each state has loads of free activities offered at national parks, museums and other attractions throughout the year. Simply Google “free fun stuff to do” for your state. Pack a picnic lunch for each outing and all you’ve spent is a little extra gas money. This is a really nice alternative because your family will be looking forward to a new experience all month long.

Massive student loan debt seems like a fate etched in stone for college graduates everywhere. It can take several years, even with a high-paying job, to eliminate student loan debt. Some post-graduates find themselves wondering if the cost of their education was even worth the effort. The good news is making slow and steady repayments is not the only solution. Many people do not realize that volunteering can also erase student loan debt.

Many organizations will eliminate a portion of student loan debt to college graduates who volunteer their time and talents for a specified period of time. The spirit of volunteering aligns with basic Christian debt management principles. Serving others to erase debt shows an outward commitment to imitate the deeds of Christ. This is a great way to help others and do good in our world, while getting some assistance with those student loan obligations.

The following organizations offer student loan debt relief through volunteer opportunities. Please note that their programs may change overtime, so we cannot guarantee accuracy of the following statements. We have provided links to each though, so feel free to review the organizations direct website for more information.

Peace Corps

As a volunteer program run by the U.S. Government, the Peace Corps sends volunteers to more than 70 nations. Volunteers work worldwide to improve education, agriculture, business and reduce hunger and poverty. Peace Corps volunteers are trained for three months and serve for a minimum of 24 months. The Peace Corps will repay up to 70 percent of qualifying student loans, depending on your length of service as a volunteer.

National Guard

Serving in the armed forces can also reduce the burden felt from student loan debt. College graduates may be eligible to receive up to $10,000 in student loan repayment in the Army National Guard. The Air National Guard has a similar student loan reimbursement program in place for college graduates. These programs can vary depending on the terms of recruitment, so it is a good idea to check with your local National Guard recruitment offices for more information.

AmeriCorps VISTA

A domestic version of the Peace Corps, AmeriCorps VISTA is dedicated to assisting nonprofit and faith-based organizations in helping low income individuals and communities eradicate hunger, homelessness, poverty and illiteracy. At the time of this writing, for a full year of service volunteers receive $4,725 to be applied toward student loans. In return, volunteers are expected to commit to 1,700 hours of community service.

Medical service

Added medical or nursing school debt can make repaying student loans more difficult. The good news is multiple options are available for new doctors and nurse to get out from under this burden. Many programs offer debt repayment for practicing in places lacking adequate medical care. Some agencies, such as the U.S. National Institute of Health, will repay up to $35,000 on student loans for doctors and nurses they employ.

If dedicating a long period of time to volunteer work is not an option but you are still overwhelmed with student loan debt, a Federal Student Loan Consolidation through FaithWorks Financial may provide you with the student loan relief you are in need of. Call us today at 877-232-5109 or fill out the short form to the right for a FREE consultation to help you find your best option.