By Eric Swanson

Donna Rosato wrote an article for Yahoo’s Financially Fit series that showcased 8 families and their “extreme” saving habits.  These families shared with the public their truly secret secrets to saving money which enabled them to have freedom in their current lifestyle choices.

The list of valuable ideas are:

• Avoid Debt
• Delay Gratification
• Create Multiple Streams of Income
• Live Below Your Means
• Cut Down On Everyday Expenses

Each family had a unique story to share that featured their ability to use their secret towards financial independence.  Reviewing that list of secret secrets, one could easily summarize those lessons into something that is not secret, but has been trumpeted for many years.

The idea to “live below your means” is quite similar to the idea of living humbly.  This idea comes from the Bible in Proverbs 13:7 which states,

There is that maketh himself rich, yet hath nothing: there is that maketh himself poor, yet hath great riches.

“This verse shows the nature of two kinds of persons. One person seeks to be viewed as having much, but is really very poor. Usually this person is supported by personal debt to support a lifestyle above their means. The other person seeks to be viewed as not having much, but is really very rich. Usually this person is striving to live a more humble life due to personally, spiritually, or environmentally principled reasons.” – Beating Debt Bible Commentary accessed 21 July 2010.

The second trend we can look at is the idea to “avoid debt” which is quite similar to the idea of staying away from debt.  This idea comes from the Bible in Deuteronomy 15:6 which states,

For the LORD thy God blesseth thee, as he promised thee: and thou shalt lend unto many nations, but thou shalt not borrow; and thou shalt reign over many nations, but they shall not reign over thee.

“God did not intend for His people to be in debt. God understands that debt makes you a slave to someone else besides Him. So, He wanted His people to be a ruler of many nations through economic means, and not a slave. However, how many Christians today are slaves to other people, organizations, or nations and not to God, because of their debt? How can we cleanse ourselves of this debt and live up to God’s intent that would make us economic rulers?” – Beating Debt Bible Commentary accessed 21 July 2010

So though Yahoo, Ms Rosato, and I used the term “secrets” to entice readers to view their article, the truly secret secrets to saving money is not anything hidden.  The valuable information we need to make great decisions for financial independence can be found in God’s Word.  I challenge you to look to His Word for guidance and stay committed to obeying what we find in the Bible.  I also encourage you to check out Ms. Rosato’s article and see how those families are using proven Biblical principles to find financial independence.

Picture by psyberartist

BEATINGDEBT.org

–Teaching Debt Prevention–

By Eric Swanson

The Federal Reserve released its latest preliminary findings of revolving consumer credit, better known as credit card debt.  Credit card debt was down for the month of May by a tremendous 10.5 percent.  This means that we have a lot of people that are also reducing their debt and will relate to you on your financial marathon in beating debt.  Seek them out, learn from each other, and form a relationship with them which can provide motivation when the financial marathon gets tough.

In addition, non-revolving consumer credit went down 1.4 percent in May.

Overall, consumer credit was down a staggering 4.5 percent in May.   This is surprising news because April’s preliminary data was showing that citizens were taking on more debt for the third month in a row.  Nonetheless, citizens beating debt is great news because it means that we are more willing to pay off consumer credit and earn our freedom than struggle under the painful agony of debt.

In addition, these numbers should help the Consumer Debt Clock to continue to go down.

How much more can we, as a nation, continue to drive the clock down?

For more info on the Federal Reserve’s numbers,
click here.

To add the Consumer Debt Clock to your blog/website,
click here.

BEATINGDEBT.org

–Teaching Debt Prevention–

By Eric Swanson

What is the most recognized Sabbath day in America?

Sunday

What is the most profitable day for retailers in America?

Sunday

Why do some Christians say Sunday is the Sabbath and then go out to malls and restaurants to force others to work on their holy day?

In the Old Testament, God told the Hebrews to “Honor the Sabbath”:

But the seventh day is a Sabbath to the LORD your God. On it you shall not do any work, neither you, nor your son or daughter, nor your manservant or maidservant, nor your animals, nor the alien within your gates. – Exodus 20:10

As many Christians believe today, we are not bound by those laws of the Hebrews.  But, out of respect, Christians strive to uphold the 10 Commandments.  Christians seem to find it easy to list more popular Commandments like

• Honor your parents.
• Thou shalt not murder.
• Thou shalt not steal.

But why is honoring the Sabbath such a forgotten Commandment?

Do we think shopping is not work?  To facilitate the shopping experience, many people must be employed.  Some stores must double their personnel in order to accommodate the amount of people seeking to buy their products or services on that one day.  As Christians, should we be forcing people to work on the Sabbath just because we want to shop for products and services?  Mark Daniels shares his insight in a recent Crosswalk.com article,

Perhaps, as a society, we are past the days we might agree to carve out a day each week to set aside the baser, daily demands of mere capitalism in favor of the higher pursuits of faith and family. If so, we’ll continue to suffer from the cumulative effects of unrelenting physical, emotional, mental, and spiritual exhaustion. But much worse, we’ll miss out on one of God’s greatest gifts to His beloved children: the privilege of sharing in His Shabbat. – Mark Daniels

Let’s imagine an economy in which Christians do not shop at least one day a week.

That thought raises some very interesting questions…

• Would there be less people forced to work on the Sabbath if Christians stayed away from consumerism at least one day a week?
• Would the environment be cleaner because there were less cars on the road for at least one day of the week?
• Would Christians be going into so much debt if they planned their shopping around the Sabbath, instead of on it?
• Would there be more dedicated family time if more Christians found other things to do on the Sabbath rather than shopping?

If all those questions created positive spiritual, financial, and environmental answers and benefits, should Christians continue shopping on the Sabbath?

Should Christians “Honor the Sabbath” by not shopping at least one day a week?

Image by Joe M500

BEATINGDEBT.org

–Teaching Debt Prevention–

By Eric Swanson

In a surprising move by the leaders of the 20 biggest economies, the G-20 decided to halve national deficits by 2013.

“‘Advanced economies have committed to fiscal plans that will at least halve deficits by 2013 and stabilize or reduce government debt-to-GDP ratios by 2016,’ according to the statement.

World leaders generally sided with cutting spending and raising taxes, despite warnings from President Barack Obama that too much austerity too quickly could choke off the global recovery.” – Associated Press

This is a surprising, but positive turn of events that was not American-led.  It seems the rest of the world understands the need to place limits to a nation’s debt consumption.  It seems the rest of the world understands that unrestrained debt consumption is not sustainable and harmful to the macro-economy.

It wasn’t too long ago that influential leaders understood the pain that too much debt can have on a country:

“I, however, place economy among the first and most important republican virtues, and public debt as the greatest of the dangers to be feared.” – Thomas Jefferson

However, “history has a way of repeating itself”, especially for those who don’t learn from it, right?

How does this news affect you?  Do you believe that Americans, seeing their leaders take a position of debt reduction, will in turn start reducing more personal debt?  Will this news affect the Consumer Debt Clock?

BEATINGDEBT.org

–Teaching Debt Prevention–

By Eric Swanson

On June 10th, the Federal Reserve released its latest findings on Consumer Debt Outstanding.  In reflection of good personal choices, personal debt went down by 2.4% for the first quarter 2010.  This is amazing because it brings the total personal national debt down to just around $13.5 trillion.  Also, for the first time ever, personal debt did not grow for the seventh quarter in a row.  This decrease was due to a 3.8% drop in household home mortgage debt AND a 1.6% drop in consumer credit.

Maybe we can interpret that as people are starting to turn away from using loans and credit cards as a normal process to make purchases.  Maybe we can interpret this data as people learning about the advantages of using cash and debit cards to make purchases.  Maybe we are starting to pay off our debts to earn our financial freedom.  Maybe we as Americans are getting closer to our Debt Independence Day.  This is all great news!

Since debt is going down, BeatingDebt.org updated the scripts on the Consumer Debt Clock to continue counting down.  Isn’t that wonderful?!

Check out the Consumer Debt Clock that is going down in value and feel free to add it to your website to encourage others to help decrease our consumer debt addiction.

Can we keep up the trend of the clock going down for another quarter?

Can we help it along by paying off our personal debt?

BEATINGDEBT.org

–Teaching Debt Prevention–

By Eric Swanson

The Federal Reserve recently released its latest preliminary findings of revolving consumer credit, better known as credit card debt.  Credit card debt was down for the month of April 2010 by a generous 12 percent.  This could be continued proof of Americans distrust and dislike for credit cards.

Unfortunately, non-revolving consumer credit went up 7.1 percent in April.  That means that the amount of auto loans and student loans went up tremendously.

Therefore, overall consumer credit was up 0.5 percent in April.  This is the third time consumer credit was reported to have gone up this year.

In good news, the Federal Reserve is reporting that consumer credit for Q1 is down 1.6 percent.  This means that we have a lot of people that are also reducing their debt and will relate to you on your financial marathon in beating debt.  Seek them out, learn from each other, and form a relationship with them which can provide motivation when the financial marathon gets tough.

In addition, these numbers should help the Consumer Debt Clock to continue to go down.

How much more can we, as a nation, continue to drive the clock down?

For more info on the Federal Reserve’s numbers,
click here.

To add the Consumer Debt Clock to your blog/website,
click here.

BEATINGDEBT.org

–Teaching Debt Prevention–

By Eric Swanson

The Federal Reserve recently released its latest findings of revolving consumer credit, better known as credit card debt.  Credit card debt was down for the month of March by a small 4.5 percent.

Unfortunately, non-revolving consumer credit went up 3.9 percent in March.  That means that the amount of auto loans and student loans went up tremendously in March.

Overall, consumer credit was up 1.0 percent in March.  This is the second time consumer credit has gone up this year.  So, for the past three recorded months of this year, consumer credit is up 1.2 percent.

Why is consumer credit going up?

What are the motivations to take on more debt?

Does this mean that the frugal citizen has given up on saving more and spending less?

Is there pent-up demand by consumers from a year long recession?

Or are prices getting too high and forcing people to take on debt to survive?

For more info on the Federal Reserve’s numbers,
click here.

To add the Consumer Debt Clock to your blog/website,
click here.

BEATINGDEBT.org

–Teaching Debt Prevention–

~~~~~~~~~~~~~~~

Past articles about consumer credit going down:

– In Tough Times, US consumers forging new behaviors

– Slapped by recession, can Consumer Nation rethink?

– What are investors waiting for?  Consumers.

By Eric Swanson

In a recent Washington Post article, Joel Achenbach asks a very tough question, “Will the debt break Washington?“.  He brings together some very revealing facts:

“In order to pay the interest and the bill when it comes due, we’ll simply have to issue more IOUs.  That, to me, is Ponzi-like,’ says Bill Gross, a founder of the investment company PIMCO.”

“In addition to running a budget deficit, Washington for years has had a massive deficit of political will.”

“Debt is the grease of Washington legislation; for short-sighted leaders, it is less a political problem than a political solution.  As long as the government can continue borrowing at reasonable rates, citizens can have their tax cuts and government services, and eventually the growing debt becomes someone else’s problem.”

BEATINGDEBT.org

–Teaching Debt Prevention–

By Eric Swanson

Paul Grignon, the creator of Money as Debt movie, created a proposal of a digital currency system based on the LETS system.  On his website, Digital Coin, he provides two videos that easily describe the problems with our current currency system and benefits of switching to a new digital currency based on the actual forms of wealth.  Currently, our system is a debt-based economic system.

As governments and banks create debt,

He also forced everyone, small and great, rich and poor, free and slave, to receive a mark on his right hand or on his forehead, so that no one could buy or sell unless he had the mark, which is the name of the beast or the number of his name. – Rev 13:16-17

How are we going to be able to deny the mark of the Beast in our economic transactions?  If we are enslaved to debt, banks are our masters.  Therefore, when banks turn to the mark of the beast, what will all their slaves do?  What will Christians do that are enslaved to banks? Turn to the mark!

Christians need to start thinking about a new form of currency that will enable us the freedom to deny the mark.  What will that currency look like?  Can it be Digital Coin?  Will you accept the Digital Coin as currency?

To read a brief PDF version of Digital Coin, click here.

BEATINGDEBT.org

–Teaching Debt Prevention–

By Eric Swanson

The usual quote about helping the less fortunate is:

“Give a man a fish and you feed him for a day.
Teach a man to fish and you feed him for a lifetime.” – WikiQuote

However, according to a recent New York Times article, helping the less fortunate has turned into something Stephen Colbert calls good business:

“Give a man a fish and he’ll eat for a day.
Give a man a sub-prime fish loan, and you’re in business, buddy.” – Stephen Colbert

So why would we think that lending a fish, at exorbitant interest rates, is going to help anyone except banks and investor class?

Let’s turn from our trust in banks and debt to solve our global social problems.  Let’s turn to God and learn to live humbly, stay away from debt, and give generously.  The obedience to trust in God in those three action steps will help the less fortunate far more than lending a fish will ever do.

BeatingDebt.org

–Teaching Debt Prevention–

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