The Good Steward
Nick Simonic, CPA, MACC
Nick Simonic is a CPA who specializes in Non-Profit, 501C3 Corporations as well as serving on the board of Wilbur Ministries. Ever since moving to
Jacksonville nearly ten years ago, Nick and his staff have watched over our
financial accountability and ministry affairs. His wisdom with regards to
financial matters as well as his passion for the Lord have made him a highly
sought after counselor in the Kingdom. You will not only gain understanding
with the words he offers each week, but I believe you will find wise counsel
and wisdom imparted here as well. I truly pray you are blessed and edified
by this special offering from us to you!
Paul Wilbur
Living Debt Free By The Word
By Nicholas T. Simonic, CPA, MACC
Part Two
The last time I told you that we were going to prepare you for Living Debt Free By The Word, by painting that portrait for you. Believe it or not, based on God’s word, you too can live debt free by applying His principles to your financial life. We began with a rough sketch. We will now continue with the charcoal rendering.
I would like to share with you some of the mistakes that people make in their financial decisions that create debt and also prevent them from eliminating debt in their lives. First, from a scriptural perspective, people think that it is not possible for them to tithe. Many people initially tell me “Nick, I can not afford to tithe!” My response is, “you can not afford not to tithe.” In Malachi 3:10 God asks, “Wherein have you robbed me in your tithes and offerings?” Our minds do not reason why se should apply money where we have not been able to in the past, to eliminate the debt in our lives. However, in this case we should have been giving God what we are responsible as His children to do all along. When we don’t tithe, we tie God’s hands from being able to lose the finances in our lives.
The second mistake people make is that they attempt to save money as they are trying to eliminate debt. This, of course, creates a slow down or a halt in their ability to eliminate the debt. Secondly, it creates a problem for you in that you are not focused on one goal at a time. There is an old Chinese Proverb that says “A man who chases two rabbits does not catch either”. So, it does distract you from your focus.
Some people think that having a home mortgage is good tax planning. Let me explain something. If you think that income taxes are a reason to have a home mortgage, then instead of paying $10,000 in interest to the bank and getting back $2,500 at the end of the year from the IRS, then you can give me $10,000 and I will give you back $3,000 at the end of the year. That is how tax deductions work for home mortgages.
People sometimes get consolidation loans in an attempt to eliminate the debt in their lives. Statistically, 87% of the people who attempt this are deeper in debt at the end of the first year. The reason for this is the first three letters of consolidation. That’s right. “CON!” You are conning yourself into believing that crunching a large amount of debt into a small amount of payments will eliminate your problems, when in fact, you are creating the ability to develop more debt when you couldn’t even pay off what you had to begin with. Of course, there are always exceptions to the rule, but please keep this in mind in your financial planning.
Some people attempt to delay the inevitable by rolling credit card balances into the zero interest credit card offers that they get. These credit card offers usually come with conditions. First, it is usually zero interest for only a short time. Secondly, it is usually zero interest until you pay late on something. Then you could be faced with thirty percent interest according to your contract. Be careful with this as the end result could be detrimental to your credit records.
Some people ask me if it is a good idea to give children credit cards to teach them proper finances. I disagree with this whole heartedly. Children can not handle their finances the way they are going in the first place, period! Why give them an added burden?
The above are just some of the things you need to consider in strategizing to eliminate the debt in your life. We will discuss the “what to dos” and, if time permits, the “how to dos” in the next article.
“Beloved, I wish above all things that you prosper and be in health, even as your soul prospers” (3 John 2)
Blessings,
Nick
The Good Steward Archive
Living Debt Free By The Word: Part 1
Living Debt Free By The Word: Part 2
Living Debt Free By The Word: Part 3
Living Debt Free By The Word: Part 4
Living Debt Free By The Word: Part 5
Living Debt Free By The Word: Part 6
Living Debt Free By The Word: Part 7
Living Debt Free By The Word: Part 8
Living Debt Free By The Word: Part 9
Living Debt Free By The Word: Part 10
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