STEP 6

Steward God’s Blessing


Live Within Your Means

As we move into more of God’s blessing, we should not move away from God’s wisdom about finance and continue to keep him first in all areas of our life.

Do you think there is a temptation to forget God as we move into more blessing?

 

Buying A House
If you buy too much house, what was supposed to be a blessing may become a curse.
Make sure your monthly repayments are less than 25% of your income on a fixed rate mortgage.
The bank will often try to lend you more than that, so you have to know how much you are willing to borrow so that you can comfortably make repayments.

When does the Bible say is a good time to build a house?

 

You Can Pay Off Your House Early
Any extra money you have after savings can be used to pay off your house ahead of schedule, allowing you to build more wealth in the future.
A home loan is a very large debt, but it is still a debt that needs to be paid off.

 

Fixed Rate vs Variable Rate Interest
A variable rate is lower, but it may increase in the future.
A fixed rate is set for the entire term of the loan.
It may be higher but you will have no troubles sleeping at night, no matter what the economic situation.
In the USA, in 1973 alone inflation tripled, from 3.9 percent to 9.6 percent.
For many families on a variable rate interest loan it meant they were not able meet their repayments and lost their homes.

 

Renting vs Owning
In any situation it is best to do the math for yourself.
Generally it will be better to own if you are planning to live in that city for the long term.
You will be paying “rent” to yourself and building equity instead of to someone else.
Buying and selling has fees, so don’t want to do that every year.

 

Investment Properties
Dave Ramsay recommends pay off your own house first, and then you’ll have more money to make investments.
He recommends not to take out a loan to make an investment, but instead buy what you can afford – with cash.
If you have a vision for property – invest in mutual funds and buy your property in cash when you have enough saved.