The Baby Steps & Conclusion

The Baby Steps to Financial Freedom:
The Baby Steps are a proven way to change your life and get you financial peace. These are the basic stepping stones that will be covered in the upcoming months (with a bunch of other fun information too). If you do these things – in order – with a budget, then you will win with money. It may seem like it is impossible, but I am here to tell you that it is not.

I like to tell people that there is actually a baby step 0. That is to get current with your debts. If you are a month behind, then it is time to get current. Sell stuff, get a 2nd job, do something to make some money to get current. Once you’re current, stay current. Then begin the other baby steps. We will discuss each of these steps in depth throughout the year in the class - this is just a preview of sorts to give you something to aim at when doing your budgets.

1. A $1,000 mini emergency fund
2. The Debt Snowball
3. A 3-6 month emergency fund

There is this thing called Gazelle Intensity. Have you ever watched the nature shows where the lion is chasing after the gazelle? The gazelle is going as fast as it can and as hard as it can because it’s life depends on it outrunning the lion. When you do these 3 baby steps, you need to be gazelle intense. You need to focus on one, do whatever it takes to get it knocked out fast – as fast as you can. Then you move on to the next one, and so on. You cannot skip the order, or that lion will nab you and you’ll be his dinner!

4. Retirement Contributions
5. Saving for kids' college education
6. Pay off mortgage early

At about baby step 4, things start to slow down and you do not have to have that gazelle intensity any more. Steps 4-6 will last for many years. You will do them all in conjunction with each other, but only move on to the next when you are ready and able.

7. Build Wealth & Give - that is what it's all about! Being able to build wealth and do positive things with your money and enrich the lives of others.


The Parable of the Talents (Matthew 25:15-30):
Please take the time to read that and relate it to your own situation. I'll just paraphrase what was going on in these scriptures. Essentially the master gave his servants talents (money). To one he gave 5, to another he gave 2, and to the third, he gave 1 talent. The servant with 5 was prudent and wise with that money and managed it well. When the master returned, the servant had 10 talents. The servant with 2 talents returned with 4. However, the servant with the 1 talent has burried it in the ground, and when the master came, he only had that one talent. True, he didn't lose it, but he didn't manage it well and wasn't wise with it. To the servants who had been wise with the talents they were given, the master said, "Well done, thou good and faithful servant: thou has been faithful over a few things, I will make thee ruler over many things."
From this we can understand that the Lord wants to bless us with more. He wants us to thrive and prosper. We are that we may have joy. The Lord wants us to have peace – financial peace. We have all heard the saying “God helps those who help themselves” and it is very clear in this parable. Those who were wise and who managed the money their master gave them, they were rewarded and were made rulers over many things. Likewise, when we show the Lord that we are good stewards with the money we are given and that we manage it well – in accordance to His laws – then He will bless us with more money. He will bless us with more opportunities for growth and financial expansion. We will reap the benefits of our hard work

If we choose not to manage our money, we cannot expect the Lord to bless us. We will only be blessed when we become a blessing. In the parable, the master said to the servant who did nothing with the talent he was given, “Thou wicked and slothful servant” That hurts, but how many times could we be told the same thing about our dealings with our finances? The master then took that one talent and gave it to him who had 10 talents – who managed his money well.

This is a universal law: If you will not manage the money you are given, it will leave you and go to someone else who is managing it. This is apparent every time you’ve had a bounced check. You didn’t manage your money well, so an extra $30 leaves you and goes to the bank – who does manage their money well. When you take on debt, then your money leaves you and goes to the creditor who manages their money well.

In Conclusion:
Dave Ramsey said it best, "You must gain control over your money, or the lack of it will forever control you."

Money goes further when it is managed – just like time. Having a budget will remove many of the money fights you have in your marriage. When you are in agreement, those fights will go away. A budget will remove the guilt, shame and fear you feel when making purchases and paying bills. It removes the worry that the check will clear, if you’re spending the electricity money on groceries. When you have a budget, you will not longer be living scared. The looking over your shoulder will stop. Life is too short to be living like that! If you take a few minutes each month to do a budget, overspending will stop, the fear will stop, the worry will stop, and the fights about money will stop.

Changing ourselves and how we look at and handle money is difficult. It is hard – I know it is. I have been there. I have been broke. I have been stupid with my money. But no more. I didn’t want to live like that, so I changed how I handle money. I didn’t want to be broke. I didn’t want to keep up with the Joneses…because the Joneses are broke, desperate, and stupid. The Joneses are losing their behinds in this economy. I don’t want to be like them. I don’t want to be normal. I want to be weird! The only way I can do that is by having a written budget and living it. The moment you begin to live this principle is the moment you begin to change your family tree. You begin to feel freedom like never before, and you begin to take control of your life and be PROACTIVE! Don't be Gomer Pyle - be weird!!!