One Money Design

If you’re just joining, I’m writing a 5 article series entitled, Live Debt Free. This is the second article out of four in which I discuss the four reasons why our family is pursing the debt free goal (including our house). I plan to end the series with a fifth article that will include some practical tools to help in becoming debt free.

Your Purpose

You may be doing some work today towards fulfilling your purpose or mission in life. However, if income from a traditional job was not required or you were debt free, would you be able to dedicate more time towards this purpose? For most of us the answer is easy. Yes, of course!

Although this article isn’t about how to identify your life purpose, there is a good resource that will help you.  Rick Warren wrote a book called the The Purpose Driven® Life: What on Earth Am I Here For? It is a 40 day journey to help you understand God’s purpose for your life.

Once you understand your purpose you can set specific goals towards committing resources and time towards it. One such goal may include eliminating obstacles or roadblocks preventing you from making a full commitment to this work.

Debt is an Obstacle

Although debt in itself may not prevent us from doing work today towards our life purpose, it can be an obstacle, slow us down and demand much of our time and attention away from this mission.  For example, if a lot of resources are required to make excessive car payments, house payments, school loan payments and credit card payments each month, they can’t be used towards accomplishing other goals.

Some goals commonly impacted are the ability to build a 3 – 6 month cash emergency fund, adequate investing for retirement, and giving. Also, if debt is in a constant state of growth, the goals become further away from our reach.

Certainly everyone’s debt situation is different. There are different reasons why people are in debt and some people have more than others.  However, everyone can commit to living debt free today and creating a plan to eliminate debt. 

6 Commitments You Can Make Today to Live Debt Free

• Do not spend more on a credit card than you can pay off each month.  Each month should begin and end with a zero balance. 
• Commit to having no more car payments.  Once your car is paid off (assuming you have a car payment today) continue to pay yourself to save for a new car.  Equity from your existing car plus your savings should be used to buy another car when needed.  Buying reliable used cars will help make this possible.
• Create a debt payment plan.  Stay tuned.  There will be more about this in the 5th article of the series.
• Create a monthly budget.
• Talk about money decisions with your spouse.
• Tithe to your church and put your finance’s in God’s hands.

Can you think of other commitments you can make to live debt free and to help you commit more time and resources towards your purpose?

The next article in the series will discuss living debt free to avoid stress.

1. Live Debt Free – Biblical Advice
2. Live Live Debt Free – Fulfill Your Life Purpose
3. Live Debt Free – Avoid the Stress of Debt
4. Live Debt Free – Help Your Children
5. Tools to Live Debt Free