The Prospering Home: Part 1

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Are you afraid to take a good look at your finances?

Unfortunately, money is a common source of fear in people’s hearts. All too often, we avoid seriously looking at our finances because we don’t actually want to know how we’re doing. As people say, ignorance is bliss.

But if we desire to see real change in our home finances, we need to take off the blinders and discover what’s really going on.

Here are four steps that will help you build and maintain financial stability in your home.

For more information on these steps, check out my manual titled Prosperous Home: Volume 1, which will show you how to manage wealth, break away from cycles, and truly begin to see increase in your home economics.

1. Discovery

Take an open and honest look at where you are financially. Begin by asking yourself these questions:

  • How much of my income am I living on?

  • How much am I giving away?

  • How much am I saving?

Next, examine your debts and assets to determine your current net worth (assets minus debts). It’s possible your net worth might be a negative number right now, but don’t let this discourage you—you can do this. You can work with a negative number. It’s just a starting point.

2. Rule of Holes

When we’re dealing with a financial problem, it’s impossible to dig our way out. What we need to do is adjust.

Ask yourself these questions:

  • Where do I want to be financially? What is my goal?

  • What percentage of my income do I want to live on?

  • What do I want my giving and saving to look like?

  • What’s my target net worth?

Make an effort to reconcile the outgo from the inflow in your home.

3. Become the Bank

In the beginning, the way you become the bank is by building an emergency fund that operates like a bumper on a car and absorbs unexpected financial events: things like hospital visits, speeding tickets, car accidents, and so forth.

Life is messy, and we need to be prepared for the unexpected. An emergency fund serves as a cushion between our home finances and an event that otherwise would propel us back into debt. We don’t have to reach for the credit card the next time something comes up, because we have money set aside for events just like this one.

4. Debt Assault

Go after the reduction and ultimate termination of debt in your life.

Building an emergency fund and paying off debt go hand in hand. It’s great to pay off debt—but without the bumper of an emergency fund, we will likely perpetuate the debt cycle in our lives the moment an unexpected expense pops up.

An emergency fund protects us and allows us to keep moving forward as we eliminate debt.

Beliefs About Money

I have seen the tools contained within the Prosperous Home manual span cultures, ages, and economic levels. They benefit families, businesses, churches, and governments, and I am certain they will help you begin to prosper in your home.

However, these steps can take you only so far.

A person’s beliefs about money will always be more powerful than their skills with money. Proverbs 23:7 puts it this way: as a man thinks in his heart, so he is.

What do you believe about money? Is there anything in your heart that doesn’t line up with the truth?

We prosper as we give up our unbiblical beliefs about money in exchange for biblical truth. To learn more about how you can uproot lies in your thinking, click here to read my article titled “Getting Rid of Money Lies.”

If you feel like you need additional help, get a copy of my book Money and the Prosperous Soul or schedule a Financial Sozo with me.

 

To read more about money and finding freedom for your soul, check out the following articles:

Lauren Stinton