Financial freedom. These are two simple words loaded with layers of emotion. If you’ve ever been in debt, you know what a weight that can be. Past due bills, upcoming taxes, missed payments, or even a constantly dry bank account all create a lot of stress and can impact emotional and even physical well-being.
Getting out from under debt and finding your way to financial freedom isn’t just a good practice, it’s a Biblical principle. The Bible contains many instructions on debt and money, outlining goals of wise stewardship and trusting in God. It has all the wisdom you need to find freedom from debt!
Why does freedom from debt matter?
You probably aren’t surprised to hear that debt is holding you back from experiencing the fullness of life God wants for you.
When you’re in debt, it lurks in the background of every decision you make and causes additional strain on your family and relationships. It adds worry to every day and anxiety to every transaction, whether you’re picking up takeout or paying the cell phone bill. It causes rifts in marriages and resentment in relationships. This type of worry “weighs a person down”. (Proverbs 12:25)
But debt also keeps us from living out one of God’s biggest values: generosity. The only obligation God wants us to have is to each other (Romans 13:8). Being in a bind with your finances can close you off to opportunities to be a blessing to others:
- It’s harder to offer your time if you need to work a second job to make ends meet.
- It’s harder to cook a meal for someone who’s struggling if you can’t afford more than your own groceries.
- It’s harder to be spontaneous with generosity—like picking up someone’s coffee or helping with gas—when there’s no margin in your budget.
- It’s harder to give to your church or a cause you care about when you feel like every dollar is already spoken for.
There’s so much peace and joy you miss out on when you’re struggling with debt. Finding freedom from debt can bring this joy back into your life. Here’s how to do it.
How to find freedom from debt
In order to find this freedom, let’s take a closer look at the Bible’s wisdom about debt, and the practical tips we can gain from it:
Place your trust in God.
We often dig ourselves into financial holes because we feel like we don’t have enough. But with God, we have all that we need. (Philippians 4:19)
One way to lean into trusting God is to confess your past mistakes, where you made decisions without seeking him first. Invite God to to travel the financial journey with you and pray for his guidance when it comes to financial decisions.
Live within your means.
In a world driven by consumerism, it can be difficult to make sound financial choices. But Proverbs 21:20 reminds us, “The wise have wealth and luxury, but fools spend whatever they get.”
This verse isn’t a judgment on those who are struggling to make ends meet—it’s a caution against spending everything we have when we do have the choice. Living within your means is less about how much you make and more about how wisely you manage what you have.
Set SMART goals.
Setting goals can be overwhelming. The SMART framework can revolutionize your approach! It’s an acronym that stands for:
- Specific: Instead of “paying off debt,” paying off a set amount, a specific credit card, etc.
- Measurable: Outlining clear steps to get there.
- Achievable: Not biting off more than you can chew or setting an unsustainable standard,
- Relevant: Why the goal matters to you.
- Time-Bound: Giving yourself a deadline to work toward.
An example of a SMART goal related to financial freedom might be:
I will pay off my $5,000 credit card debt (Specific) by making monthly payments of $500 (Measurable) for the next 10 months (Time-Bound). I’ll do this by packing my lunch for work instead of eating out (Achievable) so I will be able to afford a new cell phone next year (Relevant).
There are many debt payoff calculators offered for free online. You can download one of these and plug in a payoff debt to track your SMART goal in action each month!
How to make a plan to get out of debt
Now that you understand SMART goals, let’s take a look at how you can lay out a plan to reduce your debt and find financial freedom.
1. Assess your debt
Create a list of all your debts. This list should include the total amount of each debt, interest rates, and payment due dates.
Total all of the items to understand the full extent of your debt and how much you will need to pay off.
2. Create a debt repayment plan
Paying off debt isn’t “one size fits all.” There are lots of approaches to choose from, like the snowball method (where you pay off the smallest debts first before moving on to tackle larger ones) or the avalanche method (where you pay off your debt with the highest interest rate first.)
3. Cut expenses and increase your income
There are some surprisingly simple ways to free up more space in your budget: making home-cooked meals more often to reduce eating out, eliminating one of your TV streaming subscriptions, or even remembering to turn off the lights when you leave the room.
If you feel like you’re doing everything you can to stretch your dollar, you might benefit from supplemental income. Can you take on a part-time job until your debt is paid down? Do you have skills you can use for freelance work? Bringing in even a little bit more money to apply to your debt makes a big difference over time.
4. Seek support and accountability
If you struggle with spending, find an accountability partner to help you stay on track with your budget. You can set up monthly check-ins and let them know how much you were able to pay against your debt in one month. This kind of accountability keeps you motivated to stick to your goal of reducing debt and finding financial freedom.
You can find this kind of accountability through courses like Financial Peace University, or Financial Coach Ministry—both of which you can sign up for through LCBC Church!
5. Celebrate small wins
It takes a long time to go into debt, and it takes just as long to get out of it—if not longer. Don’t neglect opportunities to celebrate the small wins along the way! Celebration is a great way to stay motivated.
Share your successes with others so they can celebrate with you. Treat yourself in a small, inexpensive way. (Enjoy a coffeehouse latte or take yourself to a movie!)
You can even celebrate by doing something nice for someone else. This will encourage you to keep going so you will achieve financial freedom and be able to be more generous in the future.
God gives you what it takes to get out of debt.
While the journey to financial freedom from debt may feel long, the steps you take now will make a big impact on your future:
Getting out of debt takes time, but with faith, accountability, and effort, your goal is within reach. Psalm 119:1a of The Message reminds us, “You’re blessed when you stay on course, walking steadily on the road revealed by God.”
Lean on God’s guidance, trust in his timing, and let your journey to financial freedom be a reminder of how He’s always there to help you through.
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One of the key practices to help stay out of debt is creating a budget you can stick to. Here are some budgeting hacks that will help you build a sustainable budget!
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LCBC stands for Lives Changed By Christ. We are one church in multiple locations across Pennsylvania. Find the location closest to you or join us for Church Online. We can’t wait to connect with you!