H OW T O
COME OUT OF DEBT SIMPLE STEPS TO FINANCIAL FREEDOM
T
o get out of debt is a matter of self-discipline. In this booklet by Daniel Chuunga, motivational speaker and pastor, you will discover principles which can help
you reach your goal of becoming free of debt. Some of the areas discussed include: • Develop a financial plan
• Guard against impulsive buying
• Save consistently
• Seek divine help
HOW TO COME OUT OF DEBT
It is not true that once you become involved in debt you will always be in debt. It is possible to get out of debt.
The advice in this book will provide motivation and support to anyone who desires to rid their life of the burden of debt. Follow these 15 simple steps to achieving financial freedom!
PUBLISHING CO. 9 780987 019523
DANIEL CHUUNGA
Africa
ISBN 978-0-9870195-2-3
DANIEL CHUUNGA
HOW TO COME OUT OF DEBT Simple steps to financial freedom DANIEL CHUUNGA
Africa
PUBLISHING CO.
HOW TO COME OUT OF DEBT – Simple steps to financial freedom Daniel Chuunga Copyright © 2012 Africa Publishing Company ALL RIGHTS RESERVED Africa Publishing Company PO Box 111, Somerset Mall, 7137, South Africa Tel: +27 (0)21 8527656 Cell: +27 (0)83 5704585 Fax: +27 (0)86 5022980 Email: info@africacopublishing.com Unless otherwise marked, Scripture taken from the Holy Bible, NEW INTERNATIONAL VERSION®. Copyright © 1973, 1978, 1984 by Biblica, Inc. All rights reserved worldwide. Used by permission. Full or partial reproduction by any form or by any means whatsoever is prohibited. The violation of copyright is a crime. ISBN: 978-0-9870195-2-3 Publisher: Marcos Cruz Editor: Cindy Hurlow Published in South Africa Notice: The publisher offers this book to the public in the hope that it will provide information and guidance to the benefit of the reader. However, the reader should keep in mind the role of professional advisors who are authorized to analyse clients’ individual circumstances and are qualified to provide the best possible advice in each case. The publisher declines all responsibility should a problem occur from the reader’s use of this book.
CONTENTS Manage your debts
3
Collect that which is owed to you
23
Develop a financial plan
5
Work out a plan of action
25
Plan for bigger expenses
9
Be content
29
Save consistently
11
Sell surplus assets
31
Earn before you spend
13
Review your expenditure
33
Increase your income
15
Seek divine help
35
Adjust your lifestyle
17
Conclusion
37
Guard against impulsive buying
19
References
38
Do not carry large sums of cash
21
2
MANAGE YOUR DEBTS T
here are many people today who live from year to year on borrowed money. One survey revealed that, of 108 participants, 83 were living in debt and only 25 were debt-free. However, a Christian should make every effort to live a debt-free life. Ellen G. White says: “Many, very many, have not so educated themselves that they can keep their expenditures within the limit of their income. They do not learn to adapt themselves to circumstances, and they borrow and borrow again and again and become overwhelmed in debt, and consequently they become discouraged and disheartened.�1 The economic environment is tough and the only way to prosperity is to use money wisely. Our money is elastic; it can expand or contract and only wisdom can manage it. Many homes today are overwhelmed by debt. Some individuals die and are buried while still owing money to others. Debts bring about panic and despair. Debts do not give peace of mind. Debts disturb family plans and debts ultimately result in a lack of confidence to face the future. What is more, some individuals, in trying to come out of debt, end up increasing their debts. This does not mean that once you become involved in debt you will always be in debt. It is possible to get out of debt. It is possible to live a debt-free life. To be debt-free is a matter of self-discipline. In this booklet you will discover principles which, although not exhaustive, can help you get out of debt.
3
DEVELOP A FINANCIAL PLAN T
he need for money is a cry from all over by many people of different economic positions. Financial planning is the key to financial prosperity. You might have millions of dollars but, without careful planning, it could all disappear like vapour. It is important, therefore, to take deliberate steps in planning your spending. This planning may be long-term or short-term, depending on the resources you have. Some people retire with good packages, others have large salaries, and others may even win jackpots with state lotteries. However, all these will return to poverty if they fail to plan their finances. We must make our financial plans in tune with what we want to achieve and then focus our energies on that. Plan before spending and spend the way you have planned. Living within your income is one way you will control your spending. James E. Stowers says: “If you spend more than you make, you are spending your future income.�2 To get real satisfaction from money, you must have the ability not only to earn it, but also to manage it wisely. Most people have better ways of acquiring money than of managing it. Financial planning is vital in order to stay out of debt. For example, operate on a family budget so that it guides your expenditure. A financial plan must indicate your available income and estimates of your expenses. This financial plan should determine priority areas and must be written down. Expenditure should not exceed income and it is important not to exhaust
5
every income. A financial plan will help you to spend on needs and not wants. Needs are things you cannot do without, while wants are things you can do without. A financial plan should be a written document and should be followed. It does not help to have a plan and yet fail to honour the plan. By God’s grace, strive to follow your financial plan. Some individuals have gone into debt because they do not write down what they want to achieve and instead they spend money on things that do not matter. You cannot have everything at once. A financial plan will help you to leave off your list those items that are neither urgent nor important. When you do not live according to a budget, you are much more likely to fall into multiple financial problems. The old adage that says, “Show me how you spend your money and I will tell you your character” may well be true. A financial plan is simply an estimate of your income and expenditure. It is a written plan that matches expected income with expected expenses and savings during a certain period. Financial planning requires discipline because of the time involved in analysing expenditures in relation to your income. Even if you have little money, you are never excused from planning. In fact, you may need even more careful planning when you have little money. Crockers believes that “A spending plan is the guiding force behind good money management.”3 Develop a financial strategy and you will prosper in your financial management.
7
H OW T O
COME OUT OF DEBT SIMPLE STEPS TO FINANCIAL FREEDOM
T
o get out of debt is a matter of self-discipline. In this booklet by Daniel Chuunga, motivational speaker and pastor, you will discover principles which can help
you reach your goal of becoming free of debt. Some of the areas discussed include: • Develop a financial plan
• Guard against impulsive buying
• Save consistently
• Seek divine help
HOW TO COME OUT OF DEBT
It is not true that once you become involved in debt you will always be in debt. It is possible to get out of debt.
The advice in this book will provide motivation and support to anyone who desires to rid their life of the burden of debt. Follow these 15 simple steps to achieving financial freedom!
PUBLISHING CO. 9 780987 019523
DANIEL CHUUNGA
Africa
ISBN 978-0-9870195-2-3
DANIEL CHUUNGA