Saturday, October 18, 2008

Deal or No Deal - Spending (click here for podcast)

Amidst all the economics woes that we read about in newspaper, it becomes very easy to blame others for our own personal financial troubles. There is certainly no doubt that the economic conditions that we live in play a major role in our lives, we must also realize that some of our situations havw been brought on by our own actions.

Impulsive buyers buy on a whim, make unplanned purchases, usually lack self-control in buying situations, and lack clear priorities in spending, which results in overspending, unnecessary additional debt, unused articles, and family arguments.

Five solutions to impulsive buying:

1. Leave the presence of the item
2. Price the item in three other places
3. Keep tight control on the use of credit cards
4. Buy only what is needed and practical
5. Have spending priorities

Signs of compulsive spending.
1. Shopping or spending money as a result of being disappointed, angry, or depressed.
2. Having emotional distress or chaos because of shopping or spending money.
3. Feeling guilty, ashamed, embarrassed, or confused after shopping or spending money.
4. Lying to others about what was bought or how much money was spent.
5. Feeling of powerlessness and helplessness to overcome the compulsion to spend.

Three Steps to stop compulsive spending.
1.Understand the nature of the problem: the emotional needs
2.Develop & implement practical applications, spending plan
3.Eliminate credit buying.

Quick facts about debt.

1. 60% of American say that their debt is result of bad decisions
2. 64% say that debt is cause of worry for them.
3. 72% say that debt is part of modern life and can’t be avoided.



What does the Bible say about debt?

  1. Proverbs 22:7

  2. Deuteronomy 28:12

  3. Romans 13:8

Six steps to begin getting out of debt
1.Have a Written Plan
2.Determine Essentials for Living
3.Think Before Buying
4.Cut up the credit cards
5.Avoid using credit
6.Practice Saving

Resources
Crown Financial (http://www.crown.org/)
Dave Ramsey Financial (http://www.daveramsey.com/)

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