Debt Free Living

 

It is virtually impossible to reach the goal of being debt- free by following the wisdom that we have learned in the world. If men lived by the correct Biblical principles, they could live most of their lives debt free, and be able to build up a financial nest egg that would allow them to live off the interest by retirement age, without needing income from the government and without being dependent upon anyone for support. I'm not talking about multi-millionaires or those who were stingy or greedy to accomplish financial security. You can give to the Lord, and to those in need, and still be out of debt and even save for special needs, emergencies, and for future use. There's no difference in that and the Church having a savings account for future needs, such as travel requirements (because the immediate cost of travel can be so high).

The reason most people never become debt-free is because of the "conventional" wisdom concerning finances, which is all wrong. This "wisdom" is promoted by the businesses that profit from us when we pay them thousands of dollars for services we do not need. As a result, most hard-working people will remain poor all their lives to make someone else rich.

The concept of buying a house on a thirty-year mortgage is an example of how the establishment has misled and deceived the people. And, as if that isn't bad enough, now in times of low interest rates, they have promoted the adjustable rate mortgage, so that they can profit from rising interest rates in the future, and not you. In the course of an average thirty-year mortgage, you can expect to pay three times the cost of the house you buy: which means that two-thirds of what you pay is interest alone! The mortgage company will receive 200% interest on the life of the loan. And the interest rate on cars and credit cards is much higher than the interest rate on a mortgage for your home. At one time in my life, I paid up to $150.00 interest per month on credit cards and other personal loans, in addition to my house note. Think about this: by retirement age, that would have been $81,000.00 in savings if it was stuck under a mattress (without interest). With interest it would be hundreds of thousands of dollars. That money is lost to you, but a profit to them.

Advisors will tell you that houses and property are your best tax shelters. I recently received information from my bank "reminding" me of that fact?! But that's a lie. In reality they are saying, keep on paying a dollar in interest to get back 20 to 30 cents in tax deductions, for the rest of your life. Any tax accountant or investment counselor that gives you such advice doesn't know what he is doing and needs to be fired. Most counselors are just doing what they were taught and do not know why or what they are doing. It is a true case of the blind leading the blind. And what is the result of that? I used to be a financial consultant, and I know what they teach. Financial consultants, like other professionals, work first for number one and what benefits them. Have you ever heard the statement, "figures don't lie, but liars figure"? It is so true, particularly in any profession that deals with money.

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