Sunday, September 6, 2009

Debt

My husband is a financial analyst and is very intelligent when it comes to money. Ever since we got married we have used a budget and he has taught me how to save, invest, etc. Now that we are both graduated and in the work force, we are pushing ourselves to pay off our school loans. The prophets have counseled us continually to get out of debt. This is such an important subject, yet millions of people all over the world keep loading the debt up higher and higher. It is such a touchy subject because many people get offended by the counsel to not have debt. I have heard so many people say, "We don't need a budget." My question is, "How do you expect to get out of debt, whether the debt is a mortgage payment, school loans, or consumer debt, if you don't use a budget."

Here is what the leaders of the Church have to say about debt:

"Avoid debt...Today everything is seemingly geared toward debt. 'Get your cards, and buy everything on time': you're encouraged to do it. But the truth is that we don't need to do it to live. We wonder what our people will do who have been spending their all and more. If employment and income should reduce, what then? Are you living beyond your means? Do you owe what you cannot pay if times became perilous? Are your shock absorbers in condition to take a shock? Plan and work in a way that will permit you to be happy even as you do without certain things that in times of affluence may have been available to you. Live within your means and not beyond them...Purchase your essentials wisely and carefully. Strive to save a portion of that which you earn. Do not mistake many wants for basic needs."

That's a mouthful. And this is only the beginning of what the Prophets and leaders of the Church have said about debt. We need to make getting out of debt a top priority. My husband and I have been reading this book:


It is wonderful! It is a great guide to getting out of debt, saving, investing, and also has a lot of advice for buying cars, houses, and saving for your kids' college tuition. We have really enjoyed it and found it very helpful as we are working hard to pay of school loans and save for a house (if we can ever afford one here in Northern California).

Anyway, I hope that I haven't offended anyone. Just remember: it's not my advice but a commandment from God, through his prophets here on the Earth.

3 comments:

  1. If you offended anyone it's because they needed to hear it! ;)

    My husband is also fantastic at budgeting and I'm so grateful for all that he's taught me over the last five years!

    You lose so much of your free agency when you have to worry about repaying loans you have; but it's okay if you budget for education, car, and house---the prophets have also said that.

    I've also heard that Dave Ramsey has a great program, maybe I'll have to check that book out at the library....

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  2. Having Josh as a husband sure has its advantages, doesn't it? Nick and I feel the closest to each other and the spirit when we have made good financial decisions. I think it is not just a temporal commandment, but also a spiritual one. When we can learn to restrain ourselves and practice self control in this way, it will bring us joy and peace.

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  3. I love that book! I also recommend his other book, "Financial Peace". It's great for changing attitudes about money.

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