Obstacles to Financial Freedom

Obstacles to good financial planning include the following: social pressures to own more ‘things’; the attitude that ‘more is better’ regardless of cost; use of credit to delay necessary decisions; no surplus available to cope with rising prices and unexpected expenses. Don’t offset increases in income by increasing your level of spending. “. . . lay aside the old self, . . .and that you be renewed in the spirit of your mind,” (Ephesians 4:22-23 NASB).

Here are a a few thoughts on this financial devotion from Crown Financial Ministries:

Social Pressures

Social pressures often cause people to spend more money even when they don’t really want to do so, or know they shouldn’t.  Sometimes it seems the pressure is too great to tell people you don’t have enough money.  However, it’s the financially responsible thing to do to avoid spending when there isn’t enough.  Instead, try to plan ahead by scheduling time with friends each month.  In doing so, you can save enough money for the event and avoid temptations to use credit.

More is Better

More things doesn’t necessarily mean you’re going to be better off or happier in life.  There are a lot of people who look financially successful from the outside, yet they have more debt than they can handle and are under all sorts of financial stress.  Psychologists have proven people aren’t happier with more money or things.  Rather, learn how to be content with what you have and manage your resources wisely.

Use of Credit

Using credit to buy something you can’t afford boils down to a lack of patience and trust in the Lord.  It’s the easy way out.  Why not trust the Lord to provide if it’s something you feel is needed?  If you really want something and don’t have the money, add it to a want list and pray about it and save for it.  Don’t ever make on-the-spot spending decisions.

No Surplus

Wise financial stewards have a surplus built into their budgets to cope with new or unexpected expenses.  Keep in mind, a surplus isn’t just idle money without a purpose.  It’s money that’s active and is being used for savings.  When external factors change (such as price increases) the surplus can be repurposed to help meet additional expenses.  If you don’t have surplus you’re forced to sacrifice spending in other areas or can be tempted to use credit.

Increasing Your Level of Spending with Increases in Income

As you a receive pay raises from your employer (it’s ultimately from God) remember to use it wisely.  Make sure you’re raising your level of giving, saving, paying off debt and also enjoying some extra spending too.  Increases in income shouldn’t be viewed as a green light to spend more.  Rather, they should be used as opportunity to enhance your journey to true financial freedom.   In other words, pick actions that will help you advance on The Money Map or Dave Ramsey’s Baby Steps?

What do you think about these pitfalls to financial freedom?

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