Goals Set Us Free

As we approach the 4th of July and reflect on the freedoms we cherish as Americans, I want to share with you thoughts about a different kind of freedom—one that can transform your life just as powerfully. It's the freedom that comes from setting and achieving your financial goals.

Every time I speak on the topic of goal setting, I am reminded of a young man in our church. He had a desire to make a large financial commitment to the building program. We set up an appointment to talk about how much he wanted to give and how he could raise those funds. His commitment was ten thousand dollars. To him it seemed like an impossible amount of money to give, but he truly felt in his heart that the Lord had led him to make the pledge. Shortly after reviewing his income, his debt, and spending habits he agreed with me that he needed to set up a plan to accomplish his goal.

Before I give you the steps he needed to make to achieve his goal, I would like you to think about your financial goals. Do you have a plan to become debt free? Would you like to pay off your home or car? Have you made any plans for retirement? Is traveling to destinations around the world something you've dreamed about? If you have financial goals other than those I've listed above, allow me to take you through some suggestions on how to accomplish those goals.

Steps to Achieve Your Financial Goals

Following are some steps you may take to help obtain your financial goal:

1) Prepare a budget or expense plan. Make a list of all your monthly expenses. Then add your non-monthly expenses like Christmas gifts, vacations or clothes shopping. Adjust your monthly budget so you will be able to understand the correct amount of your expenses.

2) Pray about your financial decisions.

3) Seek good Christian counsel for the decisions you need to make.

4) How much we spend is far more important than how much we earn.

5) Live within your means. I define that as spending less than what you make and saving what you don't spend. Set a goal of giving 10% of your income to your church, 10% to your savings account and live on the other 80%. This plan will make you a better manager of what you have.

6) Every year, look at the total of the previous year's debt. Has your debt gone up or down? Discover what is causing your debt to increase or decline.

7) Pay off your small loans first. Then use the payment that you made on that loan to increase your payment on your other loans. This works on credit cards especially well.

8) Start saving something every month even if it's only five or ten dollars.

9) Build up an emergency fund equal to six months of your living expenses.

10) Share this plan with a good friend who can be trusted and has a goal to be debt free. Be accountable to each other.

Trust the Lord to help you with this. Proverbs 3:5 says to "Trust in the Lord with all your heart and lean not on your own understanding. In all your ways, acknowledge him and he shall direct your path."

Just to let you know, the young man in the story I began this newsletter with achieved his goal. He began to prosper in his business and has become a better manager of his finances.

You may want to go to my webpage davidcfriendauthor.com and order my book entitled "Experience the Joy of Debt Free Living" or "Generosity: What Is In It For Me?"