Avoiding Debt is a Mindset (and a Blessing from God)

Photo credit here.

I was going to post something else before this, but that will be coming soon because it's still in the works. This was going to be the last post on general principles and serve as an introduction to the posts on specific strategies to avoid borrowing money. I make my plans; God directs my feet.

Many of the ideas for living free of debt will rely on the following over and over again:

1. Commitment to following God's word, whatever the cost.

   "But be doers of the word, and not hearers only, deceiving yourselves." (James 1:22)

   "And whatever you do, do it heartily, as to the Lord and not to men, knowing that from the Lord you will receive the reward of the inheritance; for you serve the Lord Christ." (Colossians 3:23-24)

2. Contentment.

   "Now godliness with contentment is great gain." (1 Timothy 6:6)

   
   
3. Candid humility.

   "A man’s pride will bring him low,But the humble in spirit will retain honor." (Proverbs 29:23)

   “And whoever exalts himself will be humbled, and he who humbles himself will be exalted." (Matthew 23:12)

   
   
4. Control of self and confidence. It can take a long time and be excruciatingly hard to wait to be able to do the things you'd really like to do without going into debt. You've got to have perseverence to be in it for the long haul, and you can only do this if you have faith that doing what's right will work out by God's grace.

   "Whoever has no rule over his own spiritIs like a city broken down, without walls." (Proverbs 25:28)

   "But without faith it is impossible to please Him, for he who comes to God must believe that He is, and that He is a rewarder of those who diligently seek Him." (Hebrews 11:6)

   "No temptation has overtaken you except such as is common to man; but God is faithful, who will not allow you to be tempted beyond what you are able, but with the temptation will also make the way of escape, that you may be able to bear it." (1 Corinthians 10:13)

5. Creativity, willingness to challenge assumptions, and the ability to think outside the box.

   "Through wisdom a house is built,And by understanding it is established;" (Proverbs 24:3)

   "If any of you lacks wisdom, let him ask of God, who gives to all liberally and without reproach, and it will be given to him." (James 1:5)

   
   
6. Careful planning.

   "The plans of the diligent lead surely to plenty,But those of everyone who is hasty, surely to poverty." (Proverbs 21:5)

   "For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it— lest, after he has laid the foundation, and is not able to finish, all who see it begin to mock him, saying, ‘This man began to build and was not able to finish’? Or what king, going to make war against another king, does not sit down first and consider whether he is able with ten thousand to meet him who comes against him with twenty thousand? Or else, while the other is still a great way off, he sends a delegation and asks conditions of peace." (Luke 14:28-32)

   
   
7. Community, kindness, and generosity: Individuals can become debt free, but if Christians would work together, new possibilities are opened up.

   "Though one may be overpowered by another, two can withstand him.And a threefold cord is not quickly broken." (Ecclesiastes 4:12)

   "But do not forget to do good and to share, for with such sacrifices God is well pleased." (Hebrews 13:16)

Over time, following these principles will bring great reward.

Blessings of Avoiding Debt

"Now godliness with contentment is great gain." (1 Timothy 6:6)

My last post examined some of God's warnings about debt. In this one, I would like to highlight some of the blessings being debt-free can bring.

First, though, here's a picture:

The guy on the left has no money and no debts. Simple enough. The guy on the right has $100K from a loan. It looks like he's on top of the world. However, far below him is $100K he owes. Below that is the interest he will owe. He could fall and be in a lot of hurt.

In the diagram, no payments are made initially, so assuming he doesn't lose the money from the loan, he can pay it all back, except he will still have the interest to pay. If he loses the money from the loan, he will fall to the $0 position, except with a lot of money and interest owed. If he doesn't lose the money and starts to repay it after a time, the amount owed and interest will decrease somewhat, but the money from the loan will decrease much faster. It will run out and he will still owe money.

With that in mind, let's look at some of the blessings of being free from debt:

1. Peace
Staying out of debt keeps things simple. There's no extra monthly payment to earn.

2. Security
If you don't have a mortgage on your house, it's quite secure. You actually own it. If you do have a mortgage on your home, you don't really own it yet and could lose it and the money you put into it.

3. Flexibility and Freedom
Debt ties people down. If you're not in debt, it's possible to consider switching jobs, moving at a moment's notice, or doing something similar. Just imagine the possibilities! Also, you aren't a servant to a lender. You're free.

4. Ability to Advance God's kingdom
What if instead of paying a mortgage for 30 years, you could give to missionaries or other worthy causes? What difference this would make over decades! Or wouldn't it be a blessing to be able to take time to protest abortion or go on a mission trip? How about saving something for future generations? All this is much more possible if you're not in debt.

What if you're already in debt?
Jesus is greater than any sin or unwise choice. Simply repent of sin (if any) and go forward, seeking to avoid debt in the future. In John 8:11, Jesus told a woman caught in adultery, “Neither do I condemn you; go and sin no more.” Ask Jesus for freedom from debt, seek to change behaviors that have brought you into debt, and don't worry. Read Matthew 6:25-34. It's very encouraging. I'd also encourage you to check out the Debt Snowball Method.

God's Word on Debt

Photo from here.

The Bible has a lot to say about debt. Let's start with two short stories that show where debt can lead:

"A certain woman of the wives of the sons of the prophets cried out to Elisha, saying, 'Your servant my husband is dead, and you know that your servant feared the LORD. And the creditor is coming to take my two sons to be his slaves.'" (2 Kings 4:1)

God miraculously rescued the widow, but debt nearly brought a catastrophe.

Note: Biblical slavery was nothing like the slavery we think of today. It was much better (temporary, the slave had rights, etc), but still not something to be desired.

In Matthew 18:23-34, Jesus tells the parable of two debtors (please read if unfamiliar). The main point is on forgiveness (including debt forgiveness, which we must be willing to sometimes do), but it also tells how prison and even torture were used when a debt went unpaid. Thankfully, these might not be the norm today, but people still do experience torture from debt in a figurative sense.

Let's continue:

[T]he borrower is servant to the lender. (Proverbs 22:7b)

You were bought at a price; do not become slaves of men. (I Corinthians 7:23)

Not having to borrow was a blessing God promised Israel if they would obey Him:

“For the LORD your God will bless you just as He promised you; you shall lend to many nations, but you shall not borrow; you shall reign over many nations, but they shall not reign over you.(Deuteronomy 15:6) 

“The LORD will open to you His good treasure, the heavens, to give the rain to your land in its season, and to bless all the work of your hand. You shall lend to many nations, but you shall not borrow. (Deuteronomy 28:12)

Conversely, under the sections of judgments for not obeying God's law is:

“He shall lend to you, but you shall not lend to him; he shall be the head, and you shall be the tail." (Deuteronomy 28:44)

When going into debt, people usually cannot afford to pay in full for what they're borrowing for. They assume that they will be able to pay the amount of the loan over time, but caution is required:

Do not boast about tomorrow, for you do not know what a day may bring forth. (Proverbs 27:1)

Come now, you who say, “Today or tomorrow we will go to such and such a city, spend a year there, buy and sell, and make a profit”; whereas you do not know what will happen tomorrow. For what is your life? It is even a vapor that appears for a little time and then vanishes away. Instead you ought to say, “If the Lord wills, we shall live and do this or that.” (James 4:13-15)

Finally:

Owe no one anything except to love one another, for he who loves another has fulfilled the law. (Romans 13:8)

Note: I've heard this could better be translated as "let no debt remain outstanding..."

There are more scriptures about debt, but these conclusions should be clear:

• Being forced to go into debt may be a sign of God's displeasure while being debt-free is a blessing.
• Borrowing should be avoided when possible. Going into debt needlessly is unwise.

Is going into debt a sin? We are not to turn from those who want to borrow from us (Matthew 5:42), and debt may sometimes be unavoidable, so I don't believe it's always a sin. If someone knew of the Scriptures above and carelessly took out a loan they didn't need anyway, I do think that would be disobedience to God's word.

Freedom in a Debt-Enslaved World, Introduction

During the next several weeks, I will, Lord willing, be posting a series about debt.

Why write on debt? Ultimately, to seek to advance the Kingdom of God, which brings glory to God and joy to mankind.

Here are some specific reasons:

1. To encourage those who desire to avoid debt. I believe that with the Lord's blessing, Bible-based brainstorming and perseverance can result in tremendous blessings.
2. To challenge these assumptions:
1. Debt is good. Many Christians don't seem to give a second thought to taking out loans for cars, houses, or even clothes. In fact, loans seem to be prized; they are frequently sought as if they were the key to a good life. Is this biblical? It is not.
2. Debt is normally a necessity. I've heard Christian leaders say that loans should generally be avoided, but this is usually caveated with, "except for a house" or something similar, as if it's impossible to live debt-free.

Should debt always be avoided? Could there be good debt? Is it a sin to be in debt? How could someone pay for cars, a house, and more without a loan? These are some of the questions I will examine in this series.

Before diving into specifics, some principles must be set down. Usually, once a clear principle is known, specific applications or questions are obvious or easier to resolve. At the very least, what to aim for becomes clear. Because of this, the first few parts of this series will be more general in nature. Only then, will some of the wonderful strategies on how to live free be examined.

Edit: This series is meant primarily for believers, those who have had their eternal debts paid. If you are not a believer, I encourage you to read https://www.livingwaters.com/are-you-a-good-person/? or other Christian resources.

Please feel free to comment. Remarks, questions, ideas, and constructive criticism are all welcome.

Index of posts (updated as new ones are published):

• God's Word on Debt
• Blessings of Avoiding Debt
• Avoiding Debt is a Mindset (and a Blessing from God)
• Modern Bank Loans: Pure Evil
• How to Fund Purchases without a Credit Card
• How to Buy a Vehicle with Cash
• Secondary Education (e.g., College) without Debt
• What about Emergency Loans?
• Debt-Free Investing + A Caveat about Short-Term Loans
• How to Run a Country Without Debt:
• 20+ Housing Options, Mortgage Evaded.

The Gospel Gives Me Joy

There are many things for which I am thankful: Family, the church, work, learning, health, financial blessings, hopes for the future, and so much more. But nothing is perfect: People can cause pain, work can seem hard and futile, learning may feel pointless, health deteriorates, finances can be consumed, and hopes are often dashed.

Lately, during my Bible study, I've been realizing again and again that my happiness needs to be based on the gospel.

I sinned against God. I have no excuse. He is holy and perfectly just. Because God is infinite, the only just penalty for sin against Him is eternal. This is what I deserved.

Yet God chose to send His Son to earth. He lived the perfect life I could not live. He died and took upon Himself the wrath that I deserve. He imputed His righteousness to me.

Hallelujah! I have been saved! He caused me to repent of my sins and believe in Him. Now I have an eternal future with my Savior to look forward to. When I consider the fate I deserved and the future I have instead, what thankfulness should fill my mind!

Though I fail, I have been redeemed!

Though I live in a fallen world, I will live in a perfect place!

Though others sin, Christ never fails me!

Though life is confusing, I have the Holy Spirit who comforts me!

Despite everything that is wrong, "the promises of God in Him are Yes, and in Him Amen, to the glory of God through us." Glory to His name!

Watching Words is Important, Especially when there's a Disagreement

Proverbs 18:21:

"Death and life are in the power of the tongue,

And those who love it will eat its fruit."

Ephesians 4:29:

"Let no corrupt word proceed out of your mouth, but what is good for necessary edification, that it may impart grace to the hearers."

Proverbs 17:9:

"He who covers a transgression seeks love,

But he who repeats a matter separates friends."

Proverbs 20:19:

"He who goes about as a talebearer reveals secrets;

Therefore do not associate with one who flatters with his lips."

Psalm 34:13-14:

"Keep your tongue from evil,

And your lips from speaking deceit.

Depart from evil and do good;

Seek peace and pursue it."

Proverbs 16:28:

"A perverse man sows strife,

And a whisperer separates the best of friends."

James 1:26:

"If anyone among you thinks he is religious, and does not bridle his tongue but deceives his own heart, this one’s religion is useless."

Proverbs 18:13
"He who answers a matter before he hears it,
It is folly and shame to him."

Proverbs 18:17:

"The first one to plead his cause seems right,

Until his neighbor comes and examines him."

James 4:6b:

"God resists the proud,

But gives grace to the humble."

Proverbs 18:8:

"The words of a talebearer are like tasty trifles,

And they go down into the inmost body."

Psalm 141:3:

"Set a guard, O LORD, over my mouth;

Keep watch over the door of my lips."

Proverbs 26:20:

"Where there is no wood, the fire goes out;

And where there is no talebearer, strife ceases."

James 4:11:

"Do not speak evil of one another, brethren. He who speaks evil of a brother and judges his brother, speaks evil of the law and judges the law. But if you judge the law, you are not a doer of the law but a judge."

Proverbs 11:9:

"The hypocrite with his mouth destroys his neighbor,

But through knowledge the righteous will be delivered."

Matthew 18:15-18:

“Moreover if your brother sins against you, go and tell him his fault between you and him alone. If he hears you, you have gained your brother.

“But if he will not hear, take with you one or two more, that ‘by the mouth of two or three witnesses every word may be established.’

“And if he refuses to hear them, tell it to the church. But if he refuses even to hear the church, let him be to you like a heathen and a tax collector."

Matthew 18:21-22:

"Then Peter came to Him and said, “Lord, how often shall my brother sin against me, and I forgive him? Up to seven times?”

Jesus said to him, “I do not say to you, up to seven times, but up to seventy times seven."

Matthew 6:14-15:

“For if you forgive men their trespasses, your heavenly Father will also forgive you.

But if you do not forgive men their trespasses, neither will your Father forgive your trespasses."

Galatians 5:13-17:

"For you, brethren, have been called to liberty; only do not use liberty as an opportunity for the flesh, but through love serve one another.

For all the law is fulfilled in one word, even in this: “You shall love your neighbor as yourself.”

But if you bite and devour one another, beware lest you be consumed by one another!

I say then: Walk in the Spirit, and you shall not fulfill the lust of the flesh.

For the flesh lusts against the Spirit, and the Spirit against the flesh; and these are contrary to one another, so that you do not do the things that you wish."

Serve the Lord with Gladness!

Stories of adventure are all around us. It's easy to think life will be exciting after learning to drive, getting married, or reaching a certain point in a career. But maybe at present life seems boring.

If you're a Christian, your life can be an adventure as you live your life for Christ now, regardless of circumstances.

Let's look at a few things we can always do:

1. Be Salt and Light:

“You are the salt of the earth; but if the salt loses its flavor, how shall it be seasoned? It is then good for nothing but to be thrown out and trampled underfoot by men.

“You are the light of the world. A city that is set on a hill cannot be hidden. Nor do they light a lamp and put it under a basket, but on a lampstand, and it gives light to all who are in the house. Let your light so shine before men, that they may see your good works and glorify your Father in heaven." (Matthew 5:13-16)

Even while in prison, Paul and Silas still spread the good news by singing and praying. How could you share the gospel or encourage another believer today?

2. Exhibit the Fruit of the Spirit:

No matter the circumstance, you can be loving, joyful, peaceful, patient, kind, good, faithful, gentle, and self-controlled.

Let's look at three specific commands regarding our attitudes:

a. Don't worry:

“Therefore I say to you, do not worry about your life, what you will eat or what you will drink; nor about your body, what you will put on. Is not life more than food and the body more than clothing? Look at the birds of the air, for they neither sow nor reap nor gather into barns; yet your heavenly Father feeds them. Are you not of more value than they? Which of you by worrying can add one cubit to his stature?

“So why do you worry about clothing? Consider the lilies of the field, how they grow: they neither toil nor spin; and yet I say to you that even Solomon in all his glory was not arrayed like one of these. Now if God so clothes the grass of the field, which today is, and tomorrow is thrown into the oven, will He not much more clothe you, O you of little faith?" (Matthew 6:25-30)

b. Be godly and content:

"Now godliness with contentment is great gain." (1 Timothy 6:6)

"...I have learned in whatever state I am, to be content: I know how to be abased, and I know how to abound. Everywhere and in all things I have learned both to be full and to be hungry, both to abound and to suffer need. I can do all things through Christ who strengthens me." (Philippians 4:11b-13)

c. Rejoice always:

"Rejoice in the Lord always. Again I will say, rejoice!" (Philippians 4:4)

"Rejoice always, pray without ceasing," (1 Thessalonians 5:16-17)

Whether or not you are accepted to college, your family is perfect, or you have it all together, you are commanded not to worry but to be content and even rejoice.

If you were thrown in jail for being faithful to Christ and all your plans were messed up, you could still meditate on God's word and grow closer to Him. How about now? Whatever state you're in, you can be content.

3. Give Your Life for Christ:

“But seek first the kingdom of God and His righteousness, and all these things shall be added to you." (Matthew 6:33)

“He who finds his life will lose it, and he who loses his life for My sake will find it." (Matthew 10:39)

How can you be a servant for God today? Maybe it's by doing some great work that's seen by many, but perhaps God has currently given you the mission of honoring your parents, seeking to be faithful and diligent, or spending time reading a Bible story to your siblings.

What about dreams and goals? Surrender those to God and look for how you can serve Him now.

Conclusion:

It's so easy to think we'd be different if our circumstances were different. But if you will surrender your life and be a servant of God—by praying and studying God's word and being a godly child, spouse, student, or missionary (you name it!)—you can be different now!

If you lived in Nazi Germany, do you imagine you'd fight for life and be faithful to God? Today America is a country that murders the unborn, promotes sinful lifestyles, and is turning away from God. What a great time to shine our lights!

If we had financial security, better relationships, better grades, or more future prospects, we imagine we'd be happier. But Christians already have the most important relationship, a promise that God will take care of our needs, and a fulfilling calling as servants of the most high.

The Great Debate: Dr. Bahnsen vs Dr. Stein

My parents knew the late Dr. Greg Bahnsen and say that despite being a brilliant man, he could explain complex ideas very well and was also very kind to people.

In 1985 he debated Dr. Gorden Stein on the issue of God's existence.

Enjoy!

Meditating on God's Word

Quick quiz for you:

Q: What does God command in His word?

A. To read the Bible in a year.
B. To meditate on His word.

If someone has posed this question to me years ago I would have answered B, which is the correct answer. However, for years I've read the Bible every year. This isn't necessarily wrong, but when combined with memorization and prayer and the rest of life, it becomes tough.

Earlier this year it became a real challenge for me. I became extremely busy with work and was forcing myself to read without really reflecting on the meaning of the words. (Now that I think about it, I think I have faced this issue in years past too.) When I shared my troubles with my dad, he recommend I read more slowly. The fruits of this immediately started showing: More peace and joy, better understanding of the word and how it applies, and much more desire to come back to the word.

Soon after this I saw Dr. James Tour's testimony and I looked up his website. On it he boldly shares his faith and also recommends meditating on God's word: https://www.jmtour.com/personal-topics/impact-of-the-scripturesfaith-of-a-scientist/

Dr. Tour shares the blessings of meditating on God's word, which is biblical. Now I make it my aim to meditate on God's word, and I have already experienced so many blessings from it.

"Oh, how I love Your law! It is my meditation all the day." (Psalm 119:97)

What I Learned From Trading on FOREX, Why I Will Not Do It Again

A few years ago I was interested in the stock market. I was amazed by the money that some traders made on a regular basis. Although I fundamentally misunderstood investing, I was still careful and looked into what it would take to invest. I quickly learned about trading fees (about $7 per trade) and minimum account balances (about $500) and realized I had a problem: I only wanted to use about $100 to invest. Then I discovered FOREX.
Note: there is (are?) now an online brokerage(s) that offers free trading with no account minimum.(Definitely nice, if you have self control.)

FOREX (short for foreign exchange) is where currencies are traded. I learned that the minimum account balance and trading fees were much less than in the stock market. I was immediately excited, and opened a free practice account. I read a lot and learned about what investors refer to as fundamentals and technical signals and a bunch of other fun stuff. In the practice account (where fake money is used) I lost some, but I also made some, and as I learned more I thought it was almost time to invest with real money (after all, all this opportunity seemed passing me by--why not start making money now?) so a few months after opening the practice account I opened a real account with some money.

I really was quite hasty (although at the time I didn't think I was) and although my first trade made money, every trade after that was a loss, so I soon closed the account.

Where did I err? First, I was being guided by emotions rather than logical reasoning. When using a fake account, I did not consistently make favorable trades, yet still risked (and lost) real money because of the false ideas that (1) I could iron out any problems in the way I traded later and (2) the longer I didn't use real money, the longer I would be missing out on an opportunity. Of course, these are both illogical reasons. Looking back, I can see that much of my decision making process, both in opening the account and when trading, was guided by emotions.

Although I see what I did wrong in the past, I don't intend to use FOREX again because of the following: First, trading fiat currencies is not productive. It doesn't create wealth. When people trade things of actual worth (commodities, services, etc) people can be benefited immensely, but not when trading fiat currency. Second, FOREX is a zero-sum game (or worse). Currencies are traded in pairs (e.g., USD/EUR) and to bet that one currency will rise in relation to another, someone else must bet against you. If you win, they lose. If they win, you lose.

The stock market is different. If someone buys shares of stock, they are investing in a company. Also, it's not a zero-sum game. If I buy shares of stock from someone and they increase, I have gained money, but the person who sold the shares to me does not lose wealth.

Some things I've learned from this:

1. Completely understand where money is going and coming from before investing.
2. If I cannot be faithful in small things (play trades), I should not except to have success in big things (real trades).
3. Even though I was aware of the dangers of emotional thinking, I still fell into it, even without realizing it. First, I was kind of greedy and impatient. Then as I started losing money I became fearful and somewhat desperate. Thankfully it wasn't much money :-)