It may seem tone deaf to talk of ‘Stepping into Financial Freedom’ during a Cost-of-Living crisis. Fuel prices, grocery prices and energy bills are through the roof. Completing this perfect storm is the biggest interest rate rise in 27 years and the prediction of an upcoming recession by the Bank of England.
It sure doesn’t seem like financial freedom is mere steps away and it is understandable if the current situation does cause fear. However, while we are still here, there is hope of not just surviving but thriving, and I’m going to explain how.
A few weeks ago, I had the pleasure of watching Dave Ramsey at Elevation Church speaking about the topic of financial freedom. I’ve put the video below for you to watch.
It was a relevant and timely message given our current predicament. It was humorous and even quite emotional at times. We learned about Dave’s story: his marriage, journey of faith, initial financial success, going broke and then getting back on track.
There were so many gems in his message that it was genuinely difficult to pick out just a few, however the ones I chose were:
‘Money does not necessarily make you happy. Money makes you more of what you already are. If you are depressed, it’s not going to go well.. If you’ve got a big gentle heart and you get money, you can change the world.’
This is such a key point because it highlights the fact your character will be the most important factor in whether money will make your life better or not.
‘If you’ve made a mistake with money, that makes you over 12’
A very important point here as EVERYONE has made a mistake with money so do not let the shame condemn you. Learn the necessary lesson and educate yourself to reduce the likelihood of making financial mistakes in the future.
‘There are over 2500 scriptures [in the Bible] dealing with money and possessions. Proverbs alone will give you a Masters degree in finance’
This right here was the inspiration for my blog. I was reading through Proverbs and thought to myself, ‘Other people need to hear this wisdom, Christian or not.’
‘If you don’t know this man named Jesus, you’re going to struggle in business because business people who are takers struggle, but business people who are add value or are givers always win.’
This is what it always comes back to for me. A belief that Jesus is real and that he has given me a duty to help as many people as possible.
As I gleefully watched Dave on stage while nodding in approval, a slight nervousness came over me when he laid out his ‘5 Steps To Win With Money’.
I thought to myself that if this doesn’t align with the Ten Commandments of Financial Wisdom then I’m in some trouble! Without further ado, let look at Dave Ramsey’s ‘5 Steps To Win With Money’.
‘For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it? Luke 14:28 (ESV)
John Maxwell said that ‘A budget is someone telling there money what to do instead of wondering where it went.’
I have spoken extensively about the importance of planning your finances and having a written budget. You can read more here.
‘The rich rules over the poor, and the borrower is the slave of the lender.’ Proverbs 22:7 (ESV)
In this age of consumerism, the siren song of credit cards, loans and buy now, pay later is too strong for the majority of people to resist.
There was a staggering example of a gentleman who was making monthly payments of $769 on his truck but his mortgage payment was $500 pm! (Only in America!)
Dave said that people often tell him, ‘You’re weird Ramsey!’, to which he replies, ‘I know but I don’t want to be normal – normal is broke!’
His message here is to not follow the crowd in accumulating more and more debt. He summed this up succinctly by saying, ‘When you’re not making credit card payment, do you know what you have? Money!’ You can read more of my thoughts on avoiding debt here.
3. Foster High-Quality Relationships
‘Do not be deceived: “Bad company ruins good morals.’ 1 Corinthians 15:33 (ESV)
This is a very important point which I haven’t covered before.
Dave said it best, ‘You become who you hang around with’. This should cause you to re-evaluate your inner circle and consider whether they are pulling you up or dragging you down.
The inverse of the above passage is also true meaning that by surrounding yourselves with good people can be of great benefit. Dave said ‘If you want to be generous, hang around people who are generous. If you want a good marriage, spend time with people who have good marriages and not your four friends who have had 6 divorces!’
Bringing it back to money, Dave says that, ‘Your income will be the average of your ten closest friend’s income.’ As I said before, re-evaluate your circle.
‘The wise have wealth and luxury, but fools spend whatever they get.’ Proverbs 21:20 (NLT)
Put bluntly, if you spend everything that you make, you are by biblical definition, a fool. It should naturally follow from having a written budget, that you regularly save and invest a portion of your money.
The most fundamental thing to have, is an emergency fund or ‘rainy day’ fund because *spoiler alert* it will rain at some point, so there is no excuse to be unprepared.
You can find my more detailed thoughts here.
‘A generous person will prosper; whoever refreshes others will be refreshed.’ Proverbs 11:25 (NIV)
This step is quite challenging if you are saddled with debt which is why the previous four steps are so important. As Dave rightly says, ‘You can give money away when you have some!’ and ‘When you let money flow through you instead of to you, it changes everything’
You can read more about the importance of being generous here.
I would encourage you to watch the video in full and learn the numerous tried and trusted principles that Dave shares. My summary does not do it justice.
It would only be appropriate to end with Dave’s words, ‘If you only watched the video because you saw Dave Ramsey but don’t know Him, let me tell you that Jesus will change your life.’
God bless
Ten Talents
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