How is your savings plan?

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You can’t go more than a day or so without hearing someone talking about the economy. Usually, the discussion focuses on the impact of increasing food prices, the fluctuation in gas prices, the next big government bailout mistake, or other such topic. One thing that I don’t hear a lot about is personal savings goals.

Here at Managing Money God’s Way we are really big on getting out of debt and having an emergency fund. This isn’t some weird idea we came up with, just because it goes against the majority of the people in the U.S. We base this philosophy on Biblical principles. In the the book of Proverbs we find these two verses that teach us some very basic financial principles that deal with not being in debt and saving:

“The rich rules over the poor, And the borrower is servant to the lender.” – Proverbs 22:7

“There is desirable treasure, And oil in the dwelling of the wise, But a foolish man squanders it.” – Proverbs 21:20

The hardest part of getting out of debt is changing the habits that you established while creating the debt. This usually means that you will need to establish a plan, also called a budget, to help you live on less than you make. The amount you don’t spend can then be used to create your emergency fund and pay off debt.

When you are ready to win with your finances, seeking help from those who have ‘been there, done that’ is a great idea. I came across an article that provides a Guide to Short-Term Savings over at The Motely Fool. Read the whole article and then get to work.