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BY
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C.V. RADEBE
All rights are reserved by the Author
C.V. Radebe
No portion of this manual may be reproduced or utilized in any form or by
any means, electronic or mechanical which includes PHOTOCOPYING,
recording or by any information storage system, without written permission
from the Author.
This book is written by C.V. RADEBE
P.O. Box 16187, Leondale,
1401
Copyright: Breakthrough Ministries 2000
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FOREWORD:
Acknowledgement:
I would like to dedicate this book to my beloved wife, Busisiwe, who is always
available as a friend, partner and number one supporter of our God -
intended vision. My precious God given children: Bonginkosi, Thembinkosi and
Musawenkosi, who are so understanding and supportive to whatever I do. My
dear mother Sophia who always prays for me. Finally,to the members of the
Breakthrough Ministries who are such a loving and caring family of God. Last
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but not least my only sister Busi and my brother Sipho who are a great
inspiration in my life.
My heartfelt gratitude also goes to Zoe Mtwa, Mandla Mwelase and
Sibongile Mkhombo who did the proof reading of this script. To Bulelwa
Mditshwa - Mussane and Dudu Tshabalala who did the typing, I say thank you
very much. God bless you!
To God be the Glory! Great things He has done!!
By the Author
C.V. Radebe
TABLE OF CONTENTS
Chapters Content Pages
Introduction
Chapter one: GODS PLAN FOR YOUR FINANCES. 1
Chapter two: PROBLEMS WITH OUR FINANCES. 5
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Chapter three: HOW WE LAND IN DEBT. 8
Chapter four: HOW DEBTS AFFECT US. 19
Chapter five: HOW TO GET OUT OF DEBT. 25
Chapter six: PRINCIPLES FOR FINANCIAL PROSPERITY 37
Chapter seven: POSSES THE LAND 42
Chapter eight: CONCLUSION 51
Glossary of Terms
Bibliography
(i)
INTRODUCTION
Lets enjoy life that is debt free, only if we know how!
In the past few years, my family and I went through lots of financial
problems which emanated from accumulated debt and lack of sound financial
management principles. After a long period of observation and research, I
finally discovered that God has clearly outlined principles of sound financial
management, I began to study these in the word of God, and began to
implement them in my life. My financial management principles have
completely changed now and it is benefitting me, my wife and my entire
family. I wanted to live a debt free life but did not know how to, until I
found the answer in Gods word. I believe that many people want to live a life
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that is debt free but the problem is they dont know how that can be
achieved. You cannot fight an enemy until you know him.
A great deal has been said and written recently by people about how we
should handle our finances. Through this book I want Christians to
understand what the correct attitude should be towards God given financialmanagement principles versus debt which has now become a common and
acceptable lifestyle.
I believe that the body of Christ must not allow itself to become slaves of
debtors, banks and micro-landing institutions, but must develop and maintain
a proper and positive attitude towards God given financial principles.
Our attitude has been geared towards achieving everything that we have
through debt. People landed in debt because their attitude towards
prosperity was wrong. I believe that you can never be successful in life as
long as you still have a borrowing attitude. Borrowing must be controlled andit must be the last resort. The correct attitude is that we should save
enough and learn to buy cash rather than have all through debt and
borrowing. This requires true maturity and discipline and has Gods blessings
in it. I would like you to understand that I am specifically referring to those
in the church of Jesus Christ, and I am using Biblical perspectives to
support my arguments. I want to see the attitudes of members changing
from the world system of doing things to that of God given financial
principles.
(ii)
Freed to posses is a book designed to equip the believers with strategies of
overcoming the spirit of debt through applying Godly principles of
prosperity. It is also geared towards correcting the perception that man
cannot survive without borrowing. Above all, those who choose the option of
debt are cautioned about using debt as the sole means of achieving and are
provided with alternatives of strong financial discipline in the management
of loans and debts.
The book challenges the youth to save now for a bright future tomorrow,encouraging them to pave greener pastures for their children and inspires
them to accumulate wealth and riches through the promotion of the
enterprenureship spirit and God given talent.
Whilst black people in the South Africa are enjoying the taste of
democracy, the book warns the nation about the economic struggle still to
come about, caused by inequitable distribution of the land, mineral and
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mining resources.
This book answers to questions like: is debt the only way to acquire things?
It also offers a wide variety of alternative lifestyles to enjoy a debt free
life through self-empowerment. A series of biblical principles are laid as
good foundational work for sound economic principles of prosperity.However, the book does not speak against borrowing but warns against the
spirit of borrowing for living, whereby people are led unawares to the trap
of debt. The book urges people to put debt under the microscope and tries
to make them understand that borrowing leads to debt if adopted as a
lifestyle and if it is not controlled.
The book will also provide suggestions and solutions to those who are in
financial problems because of borrowing and debt. It is also intended to
challenge those who are going through a tough and rough time in their
finances because of borrowing and debt, it tries to motivate them to startapplying biblical principles and discipline to their problems. No matter how
deep the mess is, God is a God of second chances, bounce back like a tennis
ball, study and apply these principles and you will get your financial
Breakthrough!
I pray that this book may change forever some of our attitudes about our
finances. Allow the Holy Sprit to move with the conviction and reality of the
truth.
(iii)
This book is also intended for those who obey the word of God and who are
willing to be set free from the spirit of debt and poverty. The Author does
not list money as the highest level of prosperity but believes that prosperity
is both broader and bigger than money. Ownership of property as well as
shareholding is another area of prosperity to be taken seriously.
We shall also further explore the notion that ones full trust (faith) in God
will enable you to know that God can meet your needs and the needs of those
around you and not only the financial institutions and resources of thissecular world. We shall finally look at debt and its consequences to the
Christian Community and also look at ways and means of getting out of debt
that is fastly affecting the body of Christ and rendering it paralyzed and
powerless. The book concludes by challenging especially members of
disadvantaged communities to use whatever legal resources Given by God to
enjoy life in its entirety and challenge whatever forces that want to keep
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them poor because God has given them the right to posses the Land. True
Freedom goes with possession and ownership. The question to be asked is
ARE YOU FREE? If the answer is YES! Then what do you posses?
1.
CHAPTER 1
1. GODS PLAN FOR YOUR FINANCES
Do you have a plan to build up your finances?
Many people want to build financial empires but they have neither the plan
nor the resources. God has a dynamic plan for our finances and this plan is
clearly outlined in Jer29: 11
For I know the plans I have for you, declares the Lord, plans to prosper you
and not harm you, plans to give you hope and a future.
God has pleasure in seeing us prosper and not going into poverty. God is infavour of seeing believers prosper and that is why he has a clearly laid out
plan for our finances. Believers need to know that God has already laid the
foundation and we have to focus on the fact that Gods power and resources
are sufficient enough to make us prosper in all areas of our life.
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God wants to set us free from debt and He calls us to a debt free life
If the son of man sets you free, you are free indeed. John 8:10
Owe no man anything, but to love one another Romans 13:8
The devil also has plan and it is clearly outlined in John 10:10
The thief cometh not but for to steal, and to kill, and to destroy
The borrower is servant to the lender. Prov 22:76
This is the devils plan, to put you into bondage, gradually through borrowing
and eventually the spirit of borrowing becomes your dependency and you
loose your trust in God. A Christian who lives on borrowing simply says:
God you cannot help!
The devil is serious about his plan, he will ensure that he steals and destroys
your financial heritage. This is one man who really means business. He will
ensure that he steals and destroys your financial heritage. This is one man
who has long been in this business. He will never give up until he has
accomplished his mission. He makes sure that he does not leave you until you
have lost everything that you have, starting with your faith in God.
2.
Christians need to protect themselves against the tricks of the devil. Jesus
in John 10:10b says:
I am come that they might have life, and that they might have it more
abundantly.
The devils plan is to enslave and bond you into debt, and then kill and
destroy your financial heritage. The devil wants not only to torture us but
also to bring curses and cast evil spells upon our lives.
Gods plan on the other hand is to set us free from debt; rebuke the
devourer (protect your property); and prosper (to be successful in all you do)us so that we live in abundance (have more than enough). God wants His
children to enjoy life, swim in blessings and prosper in all they do so that
they can glorify His name.
Whose plan would you like to follow? Gods or the devil?
I choose to obey God because financial prosperity is not for everybody, but
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only for those who obey the law of God.
I believe that prosperity is not only a financial matter, but we can have
spiritual prosperity by receiving Jesus as Lord of our Lives. We can also
experience social prosperity by enjoying a good and loving family
relationship. Another important area of prosperity is that of the soul - here
we are referring to the soul realm which incorporates the will, the intellect
and the emotions, when we completely surrender to the Lord and allow Him
to use us we shall overcome the destructive forces of the devil, we will think
right and live right and do the right. When you are a Christian, you dont
have to focus only on material wealth, but you can also enjoy true financial
blessing benefits and prosperity by serving and obeying God.
For us to understand and enjoy these blessings, let us take a closer look atGods plan:
(i) Gods plan is to fill our treasuries. Not to empty them:
And all these blessings shall come on you, overtake you, because you
obey the voice of the Lord your God. Deut. 28:2
3.
(ii) Gods plan is that we must be in the lending business and not in the
borrowing business:
And the Lord will grant you plenty of goods, in the fruit of your body,
in the increase of your livestock, and the produce of your ground, in the
land of which the Lord swore to your fathers to give to you. The Lord
will open to you His good treasure, the heavens to give the rain to your
land in its season, and to bless all the work of your land. You shall lend
to many nations, but you shall not borrow. Deut. 28:11 - 12
(iii) Gods plan is that He gives us power to enjoy God given riches and
wealth.I will give you the treasures of darkness and hidden riches of secret
places. Isaiah 45:3
The ability to work, to earn, and enjoy what you earn is a God given
ability.
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(iv) Gods plan is that we trust Him for wealth and prosperity because it
comes from Him and not out of our own efforts:
But thou shall remember the Lord thy God; for it is He that giveth
thee power to get wealth. Deut.8: 18
The blessing of the Lord maketh rich Prov 10:22
This simply means that it is God that maketh rich, not only through your
hard work, not our bosses, not our education, but true wealth is from
the blessing of God. We have to trust God for our prosperity. We need
Him to bless us for us to be rich.
But seek ye first the Kingdom of God and His righteousness; and all
these shall be added unto you. Matt 6:33
(v) Gods plan is that we have provision enough to meet our needs and the
needs of our children.
A good man leaveth an inheritance to his childrens children.
Prov 13:22
4.
Gods plan is that when we leave this world, we must leave wealth and
blessings as well as good memories to our children. Our death must notimpoverish our families but it must uplift and benefit them financially.
Behold I set before you this day a blessing and a curse; A blessing, if
ye obey the commandments of the Lord your God, which I command this
day:
And a curse, if ye will not obey,,, Deut 11:26-28 .
I believe that there is only one way to enjoy true and sustained financial
prosperity and that is, by serving and obeying Gods financial plan for our
prosperity.
This book is going to further reveal Gods strategies against poverty and
expose the spirit of borrowing which eventually leads to debt.
We shall continue to focus on the fact that Gods power and resources are
sufficient enough to make us prosper in all areas of our life and we do not
have to rely on borrowing for a living. Gods plan has a vision of prospering us
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and in His plan He has made provision for our success.
The prosperity of all believers is in Gods plan, borrowing and debt is mans
plan. Which plan do you choose? I choose to follow Gods plan because it has
provision for me.
5.
CHAPTER 2
PROBLEMS WITH OUR FINANCES
Money has never made a man happy yet, nor will it. There is nothing in its
nature to produce happiness. The more a man has, the more he wants.
Instead of filling a vacuum it makes one. Benjamin Franklin.
God delights more in seing us being prosperous than living in proverty. He is
interested in us and it gives Him pleasure why? becauce we are His children.The biggest problem the church faces today is how to get out of debt and
live a debt-free life. The worlds financial systems are in economic shambles
and so are the majority of churches and families. Money does not make us
happy yet, so says Franklin, and I agree. Money opens a vacuum, this is the
vacuum of mismanagement which leads to debt.
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The majority of families in South Africa are living in debt and are owing lots
of moneys to banks, financial institutions and individuals. The problem is that
debt is increasing every year, the money they owe is more than the money
they earn. The cost of living has gone very high especially with the decline of
the Rand and the forever increasing petrol cost. Inflation is costing theaverage South African a hard pinch into the pocket. The average worker
cannot afford to meet the family needs and more and more people are in
debt and they live on borrowing and cannot cope with their repayments.
Another problem is that we as a nation have never trained our children on
how to handle their finances. The word of God in Prov.22:7 says:
The borrower is the servant of the lender.
Many people are not aware of the fact that if they borrow money from an
institution, the institution is going to charge them lots of interest and in
some cases make them to pay off over a long period e.g. twenty years and
you end up paying double the amount owed.
Prov. 22:6 says: Train up a child in the way he should go: and when he is old,
he will not depart from it.
6.
Families need to train up their childern that borrowing makes one a slave ofthe lender. Our families are training children to live on debt. This is
poisoning our nation. Almost everything that some families own is purchased
through hire purchase or debt. The house that people live in is owed over
twenty years. The furniture that is in the house including the bed that
people sleep on is purchased through credit. The people watch a TV that is
bought on credit. They sit on sofas that are bought on credit. Children do
homework on encylopaedias and computers that are purchased on credit. The
parents drive the children to school on a car that is purchased on credit.
They use petrol bought on credit (petrol card).
Borrowing has become a lifestyle. Students borrow to complete their studies
and they apply for student loans. Their parents sign guarantees to bond
their children into starting life with debt. What are we teaching our
children? That debt is the only way out? When the students finish their
studies, they are encouraged to apply for credit cards and they are given
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power to spend money they do not have. This mentality is damaging to our
youth who live with a false impression that borrowing is the only way to
achieve ones desired goals. Recently, more and more people are listed in the
credit bereau because they can no longer afford to pay back and are now in
debt. Debt is becoming a increasing concern in the Christian Community.Many people are loosing their valuable property, their posessions and even
family life is threatened as more and more people go into debt. Christians
have stopped tithing and are living under a financial curse. They have
stopped giving and have been robbed of Gods blessings.
The whole process starts with occassional borrowing. There is nothing wrong
with occassional borrowing where there is a pressing need, if you borrow, pay
back immediately. A person who has achieved through borrowing is caught up
by a spirit of borrowing, such a person borrows without limit and does not
care from whom. Borrowing becomes a lifestyle and he jumps from one home
to another, one race group to another borrowing money. Because this is now
a lifestyle, the individual borrows with an intention not to pay back. The
conscience of the individual dies. An individual can borrow from city to city
and if things get tough, they do not mind moving to another city to escape
the anger of people who are demanding their money back.
7.
The spirit of borrowing gives birth to many like spirited babies like the
spirit of lying, spirit of jealousy and eventually the devil takes over as thespirit of God leaves the individual.
Finally a person who has been borrowing fails to pay back and lands in all
sorts of trouble. His house, his furniture and marriage is under threat
because the devil has been given a chance through an open door of
borrowing. The people who are owed curse the borrower and the debtors
institute legal action. The end product of borrowing is disastrous.
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Borrowing is not part of our covenant with God. You cannot serve two
masters; Matt 6:24 says: you must therefore make a choice between
serving God by running your finances well and depending on Gods
provision and sustainance or serving the lender by living a lifestyle of
spending and borrowing.
The problem with our finances is that we are overspending and are never
content, we are in negative competition with other people, we are
poorly paid, we are proud and cannot take correction. We have adicted
ourselves to a complicated and sophisticated lifestyle rather than a
realistic and simple lifestyle. It is either we are in the lenders or in
the borrowers group, no one can be on the fence. It is important for
one to make a wise choice. Why not choose to lend and be a rich and
blessed man because you are serving God come out of debt and put
your absolute trust and victory on Jehova Jireh, the Lord your
provider.
8.
CHAPTER 3
HOW WE LAND IN DEBT.
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Once more debt starts by borrowing, but if borrowing becomes a lifestyle, it
becomes a sinful practice and brings about remorse in the life of a Christian.
It is not only the borrower that can be in debt but anyone who is not
cautious enough can come face to face with debt at your doorstep. There
are a number of causal factors that can lead us to debt.
3.1 Social Causes
Unhealthy social spending emanating from cultural value system, unwise
spending habits, negative competition, lack of good role models have
impoverished us and we need to look at these with both a critical and
analytical eye.
3.1.1 System of Lobola
The original purpose of the system of Lobola was to hand over goods,
cattle or money to the father or guardian of the bride in order tomaintain a relationship and also to ensure rights to any issue of the
marriage. For a long time the system of lobola has been part and parcel
of our lives. Recently, lobola has now shifted emphasis from that of
marriage consideration to that of personal gain. Exorbitant amounts of
up to R25 000 are charged on individuals. The average black male youth
who wants to marry must be prepared to part with the average of
+ R10 000 lobola. In addition to that there are lots of rituals and
hidden cots involved. Family members see it as a moment of benefit
whereby all relatives get gifts through a ceremony called Umhlambiso.Thousands of rands are spent on expensive blankets, towels, mats etc.
to buy friendship with family members. In addition to that, the wedding
still has its own demands. A young man who wants to marry shudders at
the fact that he has to set aside between R15 000 to R45 000. This
discourages our youth when they think of a marriage ceremony. That is
the reason why many of our youth do no longer marry but decide to live
together in trial marriages. The inability to cope with the demands of
lobola has contributed to immorality in our communities.
9.
The system of lobola impoverishes the youth who start life already
having to pay back student loans. Couples plan flashy marriages where
they hire limousines, change garments three times, feed thousands of
guests and finally pay for their furniture in their new residence. Many
young people cannot cope and therefore resort to borrowing as a
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lifestyle. This system needs to be reviewed critically by the Christian
community because it has put many young couples into debt and misery.
3.1.2. Funeral Expenses.
Our communities take funerals very serious. When a member of the
family dies, we mourn for a full week before the funeral. During this
waiting period, the struggling family has to provide tea and cakes to
hundreds of mourners who come to pay condolence to the bereaved
family. The funeral undertakers are in a booming business and they
offer different executive types of funeral services where you are given
an option to choose the types of funeral service you want e.g. normal,
de-lux funeral or super de-lux. The service range from using a trailer to
a 48-wheel hearse. Various types of standards are introduced to woe
mourners to take up classic funeral schemes. Lots of after funeral
services expenses take place e.g. washing of shovels, ten days; Khumula
isizilo - Unveiling of tombstones. Funerals and related rituals as well as
social practices have become more sophisticated and people need to
realize that the more we simplify our funerals the better. The
bereaved family needs to be helped and not to be drained financially.
Many people found themselves in debt after they lost a family member
or a friend.
3.1.3. Party Spirit
Africans are a party nation. For any achievement that we get, we wantto celebrate in style. Celebrations held commonly are in the form of :
Thanksgiving parties, Graduation parties, house - wetting partys etc.
This takes a lot of money because food, drinks and hiring of resources
has become a very expensive venture. People hold parties out of
competition, or because they follow the crowd or tradition but deep
10.
down they know that the money they are spending could have been
better utilized if a smaller party was held for immediate family
members. We seek to celebrate with crowds and eventually when all is
over, the family overspends and family members are left with debt.
Because of failure to differentiate between the needs and wants.
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3.1.4 Sinful Living Patterns.
Lack of self-control leads to practicing lustful desires of the flesh. Our
communities are very permissive and receptive to promiscuity and
extra-marital relationships. Men pride themselves of their manhood and
earn more respect if they have many love affairs. The most unfortunatepart is that it is married men who are doing this. This sinful lifestyle is
expensive because he has to steal from family money to please the
lovers who are forever demanding and they end up loosing both their
self-esteem and wealth. Their families end-up being the key sufferers
due to their promiscuous lifestyle.
3.1.5. School System.
Many parents have taken their children to former Models C schools.
Some have even ventured into private schools. All this is because
everybody wants to see their children getting the best quality
education for their children. Unfortunately unforeseen expenses either
than school fees, like cultural activities and social events are not
budgeted for. Some parents fail to pay for their childrens transport,
uniform and food. Children end up dropping out of school because of
absenteeism, they fail at school because legal action is taken against
parents by school Governing bodies.
All this is done because both the child and parent want to be socially
acceptable.
3.1.6 Selfish and Covetous Spirit
Placing self-interest above the interest of others as well as unwise and
competitive spending habits land people into unwarranted debt. People
overspend and their self-esteem is destroyed. They compete with their
friends, neighbours and relatives. They set themselves very high
11.
standards and later fail to maintain them, they then resort toborrowing and finally end up in debt and end up loosing everything they
have. People must learn to be content with what they have and even
learn to wait until they have raised enough money to purchase their
desired goods.
3.2. Love of Money
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One of the plans the devil uses to put people into debt is to try and
instill in them the love for money. Money is definitely not the cause of
evil but what causes the evil? let us study 1 Tim6:9-10.
But those who desire to be rich fall into temptation and a snare, and
into many foolish and harmful lusts which drown men in destruction andperdition. For the Love of Money is a root of all kinds of evil, for which
some have strayed from the faith in their greediness and pierced
themselves through with many sorrows.
Money on its on its not wicked, but it is the love of money that is
dangerous. Love of money leads to covetousness. Because people are
covetous, they resort to any means or schemes of getting money not
taking precautions.
3.2.1. GamblingGambling in the form of lottery, casinos and horse racing has hit the
families in a terrible manner. According to :The Money Standard of
June 2000, About R580 Million a week is fed into slot machines at
Gautengs five casinos. Gautengs casinos therefore make a gross profit
of about R34 Million a week. Gambling is becoming a fast growing
phenomenon since it hit America. A company based in Cape Town is
preparing to give South Africa the first South African internet betting
once the legislation is in place.
Many family members have become addicted to gambling and often
breadwinners gambling with salaries to the detriment of their families.
Gambling is addictive and habit formation. Generally families are robbed
of their livelihood. Rehabilitation of gamblers needs to be considered as
a matter of urgency to help those who are already in this predicament,
12.
3.2.2. Get rich Schemes
Many people who could not wait upon the Lord, become victims of getrich quick schemes. The schemes attract many people to invest and it
pays them high dividends. As the schemes grows, the scheme crashes
and folds away leaving many families stranded and in debt. People go and
apply for loans with the intention of investing. When the scheme folds
away, they are left in debt. Children of God need to put the spirits into
test. Do not just invest any where. First ask God if it is His permissive
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will for you to invest. Ensure that there is no contravention of the law
by the investors. The scheme must be registered. Insist on seeing the
registration certificate. If it is a new idea, challenge the law to
register or recognize it.
3.2.3. Cash Loans
The cash loans industry has become one of the most lucrative business
in South Africa. Because of continuous debt, families who are listed by
the credit bureau, people who have been turned away from the banking
institutions resort to cash loans as the only alternative. Some people
refer to such institutions as Loan sharks or vi. Mashonisa because
of the enormous interest demanded on payments. Interest varies
propotionaly from between 29 and 33 percent. Long term loans are
deducted directly from the clients pay slip through the debit order.
In some cases people who have not paid back their loans have been
roughed up by oversized men who even took their vii. ATM cards and
Pin numbers to get their money back.
Recently, the term Micro-Lender is the term used. The process is
referred to as usury, defined in the dictionary as the act of lending
money at interest, especially at an exorbitant or illegal rate. The
excessive high interest rates charged by Micro Lenders have caused
sharp critisism to be directed at the industry. Today even furnitureshops offer Cash Loans. Recently even some Unions offer cash Loans to
their members. The spirit of borrowing is fastly catching up with us.
13.
My caution to Christians is, do not make a Loan to payout a Loan, the
Lender is a slave to the borrower.
3.2.4 Failure to pay your BillsMany people leave a carefree life of impulsive shopping and ignoring
most of the bills that they accumulated. Bills are either never paid or
partly paid and never on time.
A person, who is in debts, hides the bills all over the house. Water and
lights are cut off and turned on at additional costs by the local council.
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Telephone services are discontinued and reconnected every now and
then. People who are in debts always look forward to their annual bonus
as their salvation.
Some people ignore their accounts and tell lies to their debtors. They
Buy time and pay only the instutions that inflict their greatest
pressure. Because they have so many accounts to pay, they cannot pay
all of them at a go and therefore, they rob Peter to pay Paul. They
ignore debtors letters and reminders and eventually land in serious
trouble.
3.3 Credit Cards
The introduction of plastic money has made borrowing much easier than
before. More sophistication has been added in the sense that you can
get the facility over the telephone without filling in any forms. Theseare pre-approved and sent through the post. A person is given a limit
(power to spend money they dont have) and there is no discussion of
the loan repayments. Interest rates of between 21 - 25 percent are
charged. This is a unique facility to our people and generation and it has
become a status symbol. Gold cards are awarded to certain privileged
people. The credit card impresses and excites everyone until the money
is charged into the individuals account. In America, credit cards called
Tiny Tots are issued to 12 years olds. Training the children to be in
debt at a very early stage.
14.
These facilities can be very useful if you have self control as the
fruit of the Holy Spirit (Gal. 5). To those who know themselves to have
no self control, I say do not plunge yourself and those you love to the
bottomless pit of debt. It can cause you to loose every thing you have.
Credit cards have taken the place of accounts and peoples buying andspending power has increased.
No matter what the situation is and no matter who is doing it, the word
of God reminds us: -
train up a child in the way he should go; and when he is old he will not
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depart from it. The rich ruleth over the poor, and the borrower is a
servant to the lender. Prov 22:6-7
3.4. Housing Bond
The concept of home-ownership has become a pride to every individual
in our nation. It is very exciting to own a house or property. The initial
plan of a bond was to help a young couple to purchase a home so that in
their years of retirement, the home is debt free.
No longer is the situation, nowadays banks are both allowing and
permitting people to borrow against the equity. People apply for the
second even the third mortgage bond. Financial planners and even tax
experts encourage borrowing from the bond as well because they say
the interest is low.
The meaning of the word bond means to enslave. A person who has
taken a mortgage bond, is actually bonded or a slave to the bank. He
becomes a servant of the lender and the bank ruleth over him. That is
why even after signing for occupation and registration of the bond, the
bank still retains the title deed certificate. This actually means that
you are not the rightful owner, the bank which retains the title deed is
the real owner. Recently the cars that are financed by banks also use
the same procedure. The bank retains the original registration
certificate until the car has been fully paid up.
15.
Let us take a close look at the amount of interest that an individual
pays: N.B. This is a rough estimate.
EXAMPLE A: ( Purchase of a car )
Loan amount: R100 000.00
Period of repayment: 60 months or 5years.
Monthly installment: R2 500Monthly interest: R833
Total interest over 5 years: R50 000
Total amount paid over 5 years: R150 000
EXAMPLE B: ( Purchase of a house )
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Total Bond Value: R100 000
Period of repayment: 20 years
Monthly installment: R1353.88
Monthly interest: R937.21
Total interest over 20 years: R224,931.00
(See appendix 2 for more bond interest categories)
Why pay your house over 20 years (Example B) when you can actually
pay it off in five years? (Example A) This is for the convenience and
sustainability of the banks. Christians should start looking at
alternatives of reducing their bond repayment periods so that when
they reach retirement age, they must be enjoying a debt free
retirement. Banks must allow you an option to purchase a house for a
shorter period according to your choice and affordability of the buyer.
The question to be asked is: why should I pay R 100 000 in 20 years
when I buy a house yet I pay for 5 years when I buy a car?
The answer is, the borrower is the slave of the lender.
16.
3.5 The Taxation System
The average South African has to pay about 45% tax. This equals to
wages of almost a full year. Normally one works for an average 8 hours
per day and is paid weekly or monthly. A typical scenario is that
everyday you have to work for about two hours fourty three minutes
for the government or even more before you begin to earn money for
yourself.
This is income tax alone. The State laws have become very harsh on tax
defaulters and more and more people are facing prosecution. Although
the state has tried to decrease the tax marginal bracket, the money
owed by individuals on Tax still affects the family. More business have
closed down and many have gone into liquidation as the economy and
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investor confidence goes down. South Africa is currently sitting with an
unemployment rate of over 40%.
In addition to the income tax, there are various taxes and levies that
hit hard on the ordinary man in the street. 14% Vat on all perishable
and non-perishable goods make it difficult for families to survive
because these taxes are also levied on telephone accounts, water and
lights account. In addition to the vat, debtors also add interest for not
paying in time. PAYE (pay as you earn) is also deducted from employees
salaries. Despite this, the word of God says:
give unto Caesar what belongs to Caesar. Matt 22:17-21
Churches, business and family members need to take tax seriously and
where possible employ professionals to run their tax affairs because
through negligence and ignorance they can either end up in jail or inserious debt.
3.6 Law-suites
Many families and individuals have found themselves impoverished and
in debt after what they thought would be a short legal procedure ended
up dragging and costing more than budgeted for. Unscrupulous lawyers
also strive on victims of the law. M.V.A claims have promised huge
payouts only to find that the actual amount paid out is far less.
17.
Some people borrow money equal to the initial claim only to find they
receive a far less amount than expected.
Estates taking long to be wounded up also take lots of finances and
families end up loosing a greater percentage of their inheritance
towards paying lawyers who suddenly present a final account with lots
of hidden costs. It is imperative that every child of God should watch
and pray that they enter not into temptationMatt 26:41. Many people
have slept and woke up in debt the next day loosing property and goodsthat they had accumulated throughout theirs lives. Because they owe
more than they can repay. Let us take care and build a hedge around our
property by avoiding to land in debt and start running our finances Gods
way.
3.7 Signing as surety for someone
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Surety is a devastating trap that only leads to hurts and bondage. Avoid
signing as surety for someone. Surety can be dangerous when the party
involved does no longer or through some mishap is unable to honor his or
her financial obligation.
Prov 11:15He that is surety for a stranger shall smart for it: and he that hates
suretyship is sure.
Prov 17:18
A man void of understanding strikes bonds and becomes surety in the
presence of his friend.
18.
3.8 Unemployment and Retrenchment
Due to several reasons both known and unknown, a number of businesseshave closed down. Some have done so because of failure to pay their
taxes whilst some have gone into liquidation. Some business owners do
not have confidence in a black managed government and have
deliberately closed down and have invested their monies offsure.
Some foreign investors are adopting a wait and see attitude before
they plough in investments. South Africa is currently sitting with
unemployment rate of over 40% and that is why crime is rife. People
who lost their jobs went into debt as well.
These words of wisdom are from Gods financial Principles. The way we
run our finances must be in line with the word of God. Our financial
standing as Christians must be so impressive that the world will want to
serve the Lord Jesus Christ and be saved.
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19.
2. CHAPTER 4
HOW DEBT AFFECT US
Maria is a devoted Christian, she has been punctual at work, excellent in
all she was assigned to do. At church she has been a regular tither anda faithful giver. Her bills were paid in time and she bought most of her
things in cash.
Recently Maria was promoted to the position of manager. She received
double the salary she use to get and her lifestyle changed completely.
She bought a car, moved to a more posh suburb in the inner city. She
furnished her new home with expensive furniture from various
furniture shops where she acquired credit.
Maria was very disturbed at the end of the month to discover that all
her money has to go towards account repayments. She has to pay forher new car, pay for her car insurance, and also supply petrol for every
trip she has to take. Suddenly she could no longer afford to buy
groceries. A friend advised her to apply for a credit card, petrol card
and overdraft facilities from the bank. This was granted to Maria and
now, she will buy food from the credit card, petrol from petrol card and
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she will now have lots of money to spend. Maria was now able to spend
the money the way she wanted to and she kept on spending without end.
One day, Maria came home, she found that the house was dark, she
tried to switch on, there were no lights. Her worker, Anna, came and
gave her a letter from the City Council the electricity was
disconnected. She immediately realized that she had not been paying
her electricity account for the last two moths. She remembered that
she had overdraft facilities that she can utilize for this emergency.
She went to the electronic teller machine to try and withdraw some
cash. On arrival, the transaction was declined because she had
overdrawn her account. She immediately drew a statement on her
account and discovered that she had made lots of withdrawals and has
exceeded her limit.
20.
She went home frustrated and thought of phoning a friend to seek help.
When she picked up the phone to call, a message from the phone
cautioned her that the phone had been suspended.
She burst into frenzy of tears and started to break down. Her
daughter Xoli, arrived from school and brought a note to her this was a
final demand for school fees. It never rains but pours. Her Aunt who
she has been owing some money, arrived the same evening requestingthe outstanding money to be paid with immediate effect. This brought
her into confrontation with Maria because she was emotional in handling
the issue; the situation was almost out of control and nearly became
violent.
As Maria was praying, asking God to intervene in her situation, she
remembered that ever since she was promoted, she has never tithed,
she has given very little, she has neglected God, and her self interest
had increased, she realized that she had let God down, yet God has
been so good to her. She started to weep, condemned her self, stoppedgoing to church, she was feeling guilty and sinful. Maria received
numerous phone calls at work from her bank, requesting her to settle
her account immediately. She got a letter from school threatening her
with legal action. Maria became a ball of emotions; she was continuously
at loggerheads with people at work and her performance deteriorated.
She was spending restless nights and she developed nervous tension and
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had to be admitted to a psydiatric hospital for acute depression. Just
like Maria, many of us are caught by the web of debt and when we are in
debt we get personally affected and in return we affect many other
people and even our relationship with God is also affected. Our attitude
to money and how we manage our finances can seriously be affected.
Money is not only coins and currency. It is also a means by which people
rate their own personal success. It is in most cases a source of
tremendous conflict between husbands and wives, seeblings, relatives
and friends.
21.
The word of God reveals that the way you conduct your finances
indicates a lot about the condition of your heart. People who ignore
Gods way of handling money are directed by selfishness, lack of
discipline and it is important for us to know that Christians must study
the Bible and discover Gods view of money and how it should be used.
Many families lack contentment and eventually they land in debt
impoverishing their family members. We should stop hoarding money
trusting that it will be our security or even stop over spending moneyhoping to find pleasure.
Rather let us live a life of contentment and believe God for our
prosperity. Some people are affected by the fact that they do get
money but are very careless in the way they spend their money.
Debt affects individuals and their families in many different ways.
It causes anxiety and psychological pain to an individual, the individual
also gets heightened emotionally and develops mood swings, usually this
is accompanied by a feeling of self - condemnation, a feeling ofuselessness and this can also lead to acute depression. An individual,
who fails to pay the bills, feels irresponsible and this leads to a low
self - esteem.
A person who is in debt spends lots of sleepless nights (insomnia), lack
of sleep leads to fatigue and loss of appetite, this can be a chain
reaction and can lead to many diseases like ulcers, high blood pressure,
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stress as well as cardiac problems.
4.1 DEBT CAUSES DIVORCE
Failure to manage ones debt has been a major reason why some couples
have been divorced. Many spouses left the marriage when they
discovered that there was more debt than money to repay their
accounts.
Debt strains the marriage relationship and partners start to blame each
other for their failure to manage their financial matters. They become
broken - hearted as their goods are repossessed and they hurt each
22.
other in words and emotions run high. Eventually communication stopsand the marriage ends up in a divorce.
When debt comes, the family is impoverished and parents fail to honour
their financial responsibilities to their children. Children grow up being
the greatest sufferers, as they become the pawns in the money game.
4.2 DEBT DIVIDES FAMILIES
In most cases when a person is in debt, the tendency is that they
quickly yield to the temptation of going to their next of kin to borrow
money. Son borrows from father, sister borrows from brother etc. theproblem begins when one fails to pay back. Many family relationships
have been greatly strained by such behavioral tendencies. Fathers have
been noted to have stopped talking to their sons because of the
unfulfilled promises to pay back what was due to them by their children.
Even lifetime friends and relatives turned lifetime enemies within a
Short space of time when money owed was not paid back. The main
cause of debt in the families is that families spend more than what they
earn. Debt facilities encourage a lifestyle of uncontrolled spending.
4.3 Debt Encourages a Lifestyle or Uncontrolled Spending
The easy availability of facilities for plastic money has made borrowing
much easier than before. Almost everything can be purchased though
plastic money e.g. petrol, clothes, food, etc. These facilities are given in
a form of loan repayments, they are pre-approved and a limit is given.
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This is buying power given to you, to spend money you do not have.
Money given out by the financial institutions is charged at the interest
of between 21 - 25 %.
Although a credit card can be a good facility, one must learn the art of
controlling it and not visa versa.
23.
Status symbols like the gold card also makes allowances for people with
better affordability to have more buying power. Even students fresh
from school starting to work are presented with this plastic power and
this teaches them to live on debt for the rest of their lives.
Proverbs 22:6,7 says:
Train up a child in the way he should go: and when he is old he will not
depart from it.
The rich ruleth over the poor, and the borrower is a servant to the
lender.A child who learns to live on credit becomes a slave to the
borrower. Children are taught a lifestyle of living on debt. Spouses buy
almost everything they have on debt and are not patient enough to
accumulate money and buy goods for cash.When month end comes, joy flies out of the window in the house when
family members discover that they cannot pay their bills - then fighting
begins.
4.4 Debt leaves us open to Temptation
People who are in debt are desperate for money and can willingly
support any move to get money whether legal or not. This vulnerability
makes them open for temptation to crime and corruption.
4.5 Debt blacklists you
People who fail to pay their debt and fail to negotiate with their
debtors, end up in a deadlock with their debtors. The debtors then
submit their names to the Credit Bureau which then lists a person as a
person who is not credit worthy. This listing blacklists you and you can
never be able to obtain any form of financial assistance anywhere you
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want to purchase some goods on credit. However the Credit Bureau has
been abused of late. People who have been listed have learned to be
more financially organized and learnt to buy in cash. However new
financial institutions are now helping these people but charging them
more interest.
24.
The spirit of debt has come even to the Nations. Recently many Africa
nations that have loaned money requested the International Monetary
Fund (IMF) and the World Bank to write their debts off. If this spirit
is encourage by national leaders it is very easy for the people on theground to accept this as a normal lifestyle. Debt has left some nations
poor. Let us train our children to stay out of debt and learn to depart
from making debt an acceptable lifestyle. Debt affects us in many ways.
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25.
CHAPTER 5
HOW TO GET OUT OF DEBT
If it is possible, a Christian must stay out of debt altogether. By this I mean
that all that you have must not be bought out of debt or hire purchase but
all must be bought cash. This is one discipline that we must learn to put into
practice. God wants us to be totally liberated in our finances. If we are
bound financially, we shall not be able to serve God wholeheartedly.
Sometimes Christians who are in debt cover up their irresponsibilities of
poor financial management by saying God is allowing them to pass through a
season and soon and very soon the blessings are coming their way.
God has established a covenant with us and that covenant is that if we are
His children, we shall be established financially. Confess this, believe it and
be disciplined and you shall see how blessed your finances shall be. In this
discussion I will focus on a few things that can be done if we are determined
to win the war against debt.
5.1 Identify the spirit of debt and bind it
Paul in I Timothy 6:11-12 says to Timothy .. fight the good fight of
faith ... this is what we believers have been called to do. We need to
declare warfare against the spirit of debt through developing intimacy
with God.
We need to know that debt is not from God and is brought about by
the devil. The devil has only one agenda for the Christians; the thief
comes to steal, kill and destroy. John 10:10. Thank God for Jesus
because we do not panic for we know that the devil has already beendefeated. We need to take authority over debt which manifests itself
in a form of a spirit. Debt is a spirit and it manifests itself in our
lives. It is the force that divides us against our God, our family, our
church and our debtors. Division leads to a fall. The plan of the devil is
to divide and rule (Matt.13:25) .a house divided against itself will
not stand. Debt is our enemy and it is to be opposed.
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26.
Debt advances against Gods will. Debt is a spirit that keeps us from
prospering. A person who is controlled by the spirit of debt is alsoliving in poverty.
Matt. 12:29 states a very important point to note when you fight the
spirit of debt:
Or else how can one enter into a strong mans house and spoil goods
except he first bind the strong man, and then he will spoil his house
Debt is a spirit, it is the strongman of finance, binding many people
into chains of financial bondage. Matt.16: 19 gives us spiritual
authority to do it And I will give unto thee the keys of the kingdom of heaven: and
whatsoever thou shall loose on earth shall be loosed in heaven.
Yes, thank you Jesus that we have been given the keys to lock the
spirit of debt behind bars. Right now let us bind the spirit of debt in
our lives and release financial breakthrough and posses our wealth; let
us not allow the devil to be a hindrance to our financial prosperity.
Pray, repent, fast against this spirit bearing in mind Eph.6 that it is a
spirit we are to fight. Finally ask the Holy Spirit to guide you because
He is the commander of our spiritual battles. Do not grieve the Spiritof God, listen to Him and allow Him to guide you in the use of your
finances.
5.2. Work out a plan to get out of debt
Set up a strategy of dealing with debt by drawing a plan, have a vision
to get out of debt. Once there is a plan, God will make provision. Once
the plan is drawn, commit it to the Lord in prayer and He will prosper
it Ps.37: 5.
Draw a list of all your bills and start paying them off from the
smallest bill. Once it is paid off do not go for another debt but pay
off the next until you remain with your largest bill. Pay only one bill at
a time until you are out of debt. With commitment and sacrifice, a
written plan can help you to eliminate your enemy (debt) completely.
It is also of vital importance that you speak to your debtors about
your financial position.
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27.
Do not ignore debtors or try to cheat or even try to buy time. Tell
them or arrange with them you will pay (date) and how you will pay.
5.2.1 Ask God to give you ideas to support your plan
In II Kings 4: 1-7 Elisha advised a widow who was in debt and in
danger of loosing her children to do the following:
5.2.1.1 Sell some goods in the house to pay off your debt
He asked her a thought-provoking question, what do you have in your
house? The answer to some of your problems is within your house.
There are many items and goods that you keep at your house that you
can sell. Identify the goods and sell them to pay off your debts.
5.2.1.2 Borrow Vessels
Elisha advised the woman to borrow the vessels in the neighborhood.
Go and study how people operate their side-business in other words
get lots of business ideas and adopt one to suit your environment as
well as your pocket.
You can open an opportunity of a lifetime for you and your family.
Look for a stall at a flea market and sell something. Use your hands to
do craftwork and look for a market place to sell the product. Pray fora business idea and God will open doors that you never thought would
be open for you. Apply your faith and the situation around you will
change. My prayer is that Banks shall begin to be more supportive to
people with ideas and release the finances they so desperately need
to fulfill their God given desire.
5.2.1.3 Shut the door and pour out the oil
When God has given you the idea, register the idea. Many people in
black communities do not register the ideas that God has given them.
This results in people copying the idea. Register the idea and let
anyone who likes your idea buy it as a franchise from you.
An example I can quote is that of amasi. The brand name for amasi
and amahewu is originally a black mans idea. But guess who is running
the supply and distribution of these predominantly black products?
The so called spaza shops and chicken dust are other examples.
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28.
If you do not register an idea, somebody just copies the idea next
door and the business idea spreads like a mushroom limiting the
potential owner to benefit from his brainchild.
The saddest part is that the founder of the idea dies a poor man.
Colonel Sanders of the Kentucky Fried Chicken I am sure died a
millionaire because he registered his idea and people who like his idea
have to pay for using his idea.
5.2.1.4 Pour the oil into the vessels until they are full
The oil is yours but the vessels are borrowed. After you have
borrowed business ideas, put in your own talent or ability into the
business idea that will suit your skills and market.
Work hard on your business and do not tire until you have saturatedboth your idea and target market.
Go sell the oil, pay your debts and live with the rest.
Sell your products, involve your children.
If the idea works well it will become a family inheritance for your
children as well.
When money comes in, do not forget to pay your debt.
Save the rest to enable you and your children to enjoy a debt free
life.
5.3. Apply for a financial rehabilitation
If your finances are in such a mess that none of the above plans can
help you, pray seriously and be sure you are hearing from God and
then ask for godly counsel. Do not rush to take peoples opinions but
rely entirely from the counsel of the Spirit of God. When all has
failed and I believe that you will also be convinced that this is the only
last resolve, consult the professionals and apply for financial
rehabilitation. Prov.24: 6 For by wise counsel thou shall make thy
war"
Study the following examples of alternative measures that can be
taken when people have very serious problems.
29.
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The following are the Assets, Liabilities, Income and Expenditure for the three
families: the Abel, Botha and Cane family.
A. B. C.Family A Income > Expend. Family B.Income < Expend. Family C.Income = Expend.
ASSETS
VALUE Fixed Property (House)
165, 000.00 Motor vehicle
0.00 Tractor with trailer
20,000.00 Furniture & fittings
16.000.00 Unit Trusts
2,500.00 Electricity Deposits
500.00 Cash @ Bank
1,000.00 Cash on hand
350.00 LIABILITIES Mortgage
Bond (house) 151,000.00
Furniture & Fittings
2,000.00
Edgars,SalesH.Truworths
6,000.00 Bank Overdraft
200.00 Bills Payable5,000.00 Sundry Creditors
100.00 INCOME SALARY
(wife) 0.00
SALARY (Husband)
8,000.00 Investment
500.00 Other
1,000.00 EXPENSES Tithes &
Offerings (1,000.00)
Taxation
(1,950.00) Pension
(600.00) UIF
0.00 Medical Aid
(500.00) Rent/Bond payments
(2,000.00) Furniture Installment(300.00) Credit Cards
(800.00) Life Insurance
(200.00) Transport cost
(400.00) Clothing Edgars etc.
(500.00) Rates & Taxes
(500.00) Electricity & water
(600.00) Doctor & Chemist
(200.00) Telephone Accounts
(120.00) Cellular (Vodacom)
(100.00) Groceries
(500.00) Helper/Gardner
(230.00)
ASSETS VALUE
Fixed property (house) 0.00
Motor Vehicle 35,000.00
Furniture & fittings 12,000.00
Shares (investments) 2,000.00
Electricity deposit 800.00
Cash on hand
200.00 LIABILITIES Mortgage
Bond 0.00 Motor
vehicle 22,000.00
Furniture & fittings 0.00
Edgars/Sales H.Truwor. 5,000.00
Std Bank personal loan 5,000.00
Bank overdraft 5,000.00
Bills payable 5,000.00
Sundry creditors 3,000.00INCOME SALARY (wife)
5,000.00 SALARY (husband)
1, 500.00 Investment
0.00 Other
0.00 EXPENSES Tithe &
Offerings (700.00) Taxation
(1,400.00) Pension
(500.00) UIF
(50.00) Medical Aid
(500.00) Rent/Bond payment
(1,000.00) Furniture Installment
(200.00) Credit cards
(300.00) Car insurance
(200.00) Transport cost(200.00) Clothing Edgars etc
(500.00) Rates & Taxes
0.00 Electricity & water
(400.00) Doctor/chemist
(200.00) Telephone Accounts
0.00 Cellular (Vodacom)
(200.00) Groceries
(500.00) Helper/Gardner
(200.00)
ASSETS VALUE
Fixed Property (house) 100,000.00
Motor Vehicle 50,000.00
Furniture &fittings 20,000.00
Shares (investment) 0.00
Electricity Deposit 1,000.00
Cash @ Bank 500.00
Cash on hand 200.00
LIABILITIES Mortgage bond
50,000.00 Motor vehicle(loan)
10,000.00 Furniture & fittings
2,000.00 Clothing, Edgars etc.
600.00 Std.Bank pers.loan
0.00 Bank overdraft
0.00 Bills payable
0.00 Sundry creditors200.00 INCOME SALARY (wife)
2,000.00 SALARY (husband)
5,100.00 Investment Other
EXPENSES Tithe & Offerings
(650.00) Taxation
(1,300.00) Pension
(450.00) UIF
50.00) Medical Aid
(500.00) Rent/Bond payment
(1,100.00) Furniture Installment
(100.00) Credit cards
0.00 Car insurance
(200.00) Rates & taxes
(200.00) Electricity & water(350.00) Telephone Accounts
( 100.00) Cellular ( vodacom)
(400.00) Groceries
(400.00) Helper/Gardner
0.00
Surplus/(Deficit)
(1,000,00)
Surplus/(Deficit) (2, 750.00) Surplus/(deficit) (50.00)
N.B.Surplus or deficit is determined by subtracting income from expenses.
Net Asset Value (owners equity) is determined by subtracting liabilities from Assets.
30.
FINANCIAL REHABILITATION PLAN
QUESTION: You are requested to advise the two families, to either
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implement the plan or have the budget.
SOLUTION TO THE QUESTION ABOVE
Family A have a deficit of 1000.00. but their Income is supposed to be more
than their expenses.
TWO IMPORTANT THINGS THAT THE FAMILY A CAN DO
3. The tractor and trailer worth 20,000.00 can be sold and the proceeds be
used to pay off the furniture, Edgars, Bank and sundry creditors.
The following list of expenses will be removed and a Surplus of 600.00 will
be realized.
Furniture 300.00
Credit cards 800.00Edgars 500.00
__________
Total Cashflow 1600.00
After paying all the liabilities, they still have R7, 000.00 which can be
invested somewhere and earn interest.
4. The A. familys Balance Sheet is very strong, borrowing wont harm them.
If a loan of R13, 000 is raised at a monthly installment of sayR500.00.
The net results is that a surplus of R1, 100-00 will be realized.
Therefore a simple Rehabilitation plan can help the A. Family.
31.
FAMILY B.
Family B have a deficit of R2750.00
This familys Balance Sheet is weak, they are highly geared (borrowed).
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Borrowing wont help this family but will get them into more serious financial
problems.
A solution for this family is a FINANCIAL REEHABILITATION PROGRAM
Voluntary Distribution Plan has to be made and Creditors be approached.
The Magistrate Courts Act 32 of 1994 (as amended) section 74 can be
invoked by the Debtor if cooperation is not forthcoming.
FAMILY C.
Family C has a deficit of R50.00.
This family has a very strong Balance Sheet. All they need is a good plan
(budget) Long term and Short term. (Spending wisely)
32.
Consolidation of DebtWhen you owe too many debtors, you can consult financial consultants
who can take over your account and make one loan for you to be able
to settle all your accounts under one account - This is the
consolidation of your debts. Instead of paying many isolated accounts
you pay one account until your account has been fully settled.
*
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5.4 Draw a budget and stick by it
Our money in a form of salary comes from God. If you can begin to
see God as Jehovah Jireh, your provider, then you will understand
that your employer is used by God, God is your actual pay master.
If you are grateful enough you will be cautious on how to use yoursalary or wages. When you receive your money, ask the Lord to bless it
and then draw a plan of how you want to use the money.
Write out a plan of anticipated expenditure and list it in order of
priority. A budget helps to keep you focused and helps you to make
responsible decisions.
Becareful of the small purchases
During summer, when trees have produced good fruit, there are small
flies called fruit flies. These flies are very small but they can
completely destroy the fruit. The budget can be completely
disorganized by the small purchases that one has not budgeted for.
Small flies cause great damage, small purchases cause a dent in your
budget.
Luke 14:28 endorses the fact that we have to plan for everything that
we have to do successfully. If the Lord is master of your life, put Him
as a priority in your finances. Many people do not care about budgeting
and some never care to budget and therefore find themselves
exceeding their boundaries of spending and wasting a lot of money.
Let us now have a look at an example of a family budget.The only time I recommend a loan or borrowing of finances is when
you want to consolidate your accounts or want to buy a car, house, and
furniture. You must be able to pay back the loan and get out of it as
soon as possible.
33.
HOME BUDGET MONTH_____________ YEAR__________
GROSS INCOME:
5. Salaries ___________ 6) Dividends_________
6. ___________ 7) Sale of goods______
7. Extra Job ___________ 8) Capital gain _______
8. Rental ___________ 9) Other ___________
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9. Interest ___________
INCOME TOTAL
TitheOffering
Tax
Medical Aid
Bond or Rent
Water/Elec./ Rates
Telephone/Fax/ Post
General groceries
Meat
Milk/bread/cheese
Vegetables
Sweets/chips/coldrinks
Take aways
Entertainment
Transport/cars/petrol/license
Books/tapes/cd s/ videos
Clothing
Education/ School fees Extras
Insurance Premiums
Life Insurance
Investments
Savings
Holiday
Installments Purchases
Home improvements/ maintenance
Furnishings
Birthdays/Gifts & Toys
TV Linces x12
Maid
Other
Last Months (Surplus) or Shortage
Expenses Total
(Surplus) or shortage
34.
Percentages
It is suggested that God should be considered as the important part of
your budget. Therefore the tithe - 10% of the gross income must be a
Christians priority. Another aspect that must be considered is the
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savings. Savings should be 10% of your paycheque. The living expenses
can be about 75% and 5% can be utilized as an emergency fund.
Make your budget simple and realistic. Be ready to adjust in case of
emergencies. Start teaching your children at the age of thirteen
(teenage) to start managing their allowances through a budget and
tithe. They must be taught how to earn extra money and how to budget
and spend money wisely. Prov.22:6 train up a child.
5.5. Live a simple lifestyle
Deal with the roots and not the fruits of the problem. If you want to
remove an orange tree growing on your entrance, you do not become
content by removing loads and loads of oranges or by pruning lots of
branches. This is no wisdom at all. Cut the roots, it is the roots thatproduce the orange tree.
Fight against the sophisticated lifestyle that you lead that eventually
leads you to overspending. Know exactly what it is that leads you to
overspending. Pride can cause you to buy very expensive furniture in
order to compete with friends or neighbors. Sometimes people buy
things they cannot afford just to create an impression that they are
rich. This is a false impression, you are not only deceiving others but
yourself as well. Use a taxi instead if you are failing to maintain the car.Sell your car or park it if you cannot afford to run its expenses. Take
your child to a cheaper and affordable school without compromising the
standard. Relocate to a cheaper and more affordable place than live
where the rates are expensive and the bond is beyond your
affordability. Why keep a cellphone when you cannot even afford
airtime for emergencies? You can live without a cellphone, it is all in the
35.
mind. Do not live on overdraft facilities, use your paycheque and learnto live on your affordability.
Plan your life; do not be swayed by the crowd, live your life; do not allow
life to live you. John Wesley always wore cheap clothes, ate a simple
meal and gave a lot even though he was a rich man. He kept one forty
seventh of his earnings and gave away 98%.
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Many people go into expenses because they want to prove a point to
people. If we can learn to live a simple lifestyle lived by birds and
flowers, we shall enjoy in its simplicity. Let us stand strong on the word
of God and do it. Eat the food your purse can afford and wear the
clothes you can afford to buy. if you live a simple life, you will learn toput your trust in God and when you trust Him and put all your cares
upon Him, He will surely meet your needs on a day to day basis.
5.6 Trust God for His intervention
When you seem defeated, ask for Gods miraculous intervention.
However do not have a wrong misconception about the purposes of
miracles. Do not disqualify yourself from receiving your miracle by not
paying tithes and giving offerings. Do not become careless about your
spending priorities. God will only reveal Himself if you do things
according to His will. In II Kings 6 we see God miraculously paying off
the debt of a widow through giving her a business idea of how to make
money. This woman who was in serious trouble in her financial bondage.
In II Kings 6:5-6 we also see the prophet Elijah retrieving the axe that
was borrowed and it fell into the water. This was a debt that was
accidentally incurred by the sons of the prophets. Through the faith of
the man of God, he cut down a stick and cast it to the position of the
axe head. A miracle happened, the iron began to swim. This was a
miraculous debt cancellation. A word of caution is that once again do notdeliberately commit debts and hope to escape through the gate of
faith. Remember James 2:17 declares that faith without works is dead.
God will only deliver you if you combine your faith with your works. Wait
for Gods intervention when you have reached a cul de sec in your life.
Change your attitude and rely on the power from above.
36.
5.7 Do not make a loan to pay your debtWhen in debt, do not sink yourself deeper through the loan system.
If you are in debt and you go for another loan, you are just
transferring the problem from one name to the other. Cash loans,
revolving credits are very effective means of binding you into high
interest rate repayments. Some institutions can even recommend
longer periods of repayment but lesser premiums. Always look out for
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the catch, a borrower is a slave to the lender.
Remember it is normal to borrow occasionally but once you are forced
to borrow money to pay your debts, you need to know that you are now
living in bondage.
5.8. Do not rely on your salary find extra income
When God made man, he put him in the garden of Eden so that the
Garden should provide for his needs. Gen. 2: 7-9
Beyond that God set up a river which was parted into four heads.
Gen. 2:10-14.
I believe that the Lord has made provision for us not only to drink
From one source i.e. our employer only, but also to explore other side
Careers e.g. part time jobs to aungement on our salaries especially if
we have debts. We need also to go into side business to sell something
that can bring income to improve our financial position or even learn a
skill or trade that we can convert to cash. When God send Moses he
said to him:
What do you have in your hands.
Let us discover the potential that God has put in us and God has given
unlimited potential. Let us not be lazy to work hard and unleash what
God has put in us.
37.
CHAPTER 6
PRINCIPLES FOR FINANCIAL PROSPERITY
A question often asked by many people is whether or not God is in
favour of abundance or poverty in a believers life. The word of God
through the scripture clearly reveals that we can never achieve
anything without faith in God. Without faith it is impossible to please
God (Heb 11:6); without faith you are a non-achiever. Again in Psalm
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35:27; the word of God says.
God has pleasure in the prosperity of his servant.
We need to know that God has pleasure in our prosperity (3 John 1:2);
and not in poverty.
Our prosperity is based on using Gods formula for success. This
formula is based on the Bible. God has a plan to prosper us and not to
harm us. (Jeremiah 29:11). David also endorses this in Ps 23:1 when he
says: The Lord is my shepherd, I shall not want.
There is nothing that we can ask from God and not get it. Matt 7:7;
Matt 21:22, John 11:22, John 14:13-14. We must learn to trust God
entirely (Ps 20:7). If you trust God with all of your strength, you will
understand the reason why you do not need to borrow - We borrow
because we doubt God, because we are impatient and cannot wait on
God. We need to know that God can meet all our needs according to
his riches in Glory.(Phil 4:19). Let us apply Gods principles in our lives
and the doors of prosperity shall be wide opened for us. Let us take a
close look at some principles that can really bring transformation if
truly applied.
6.1 Pay your tithe
I believe and I am fully convinced that the tithe is responsible for the
success of many believers in nowadays. This is my practical experience
and no one can convince me. Show me a tither and I will show yousuccessful person. There are some schools of theology who advocate
for the abandonment of the tithing principle because they believe
that it is an Old Testament economic ideology.
38.
My experience as a pastor of our church has shown me that there is a
difference between the prosperity of a tither and a non-tither.
Malachi 3:8-12 says non-tithes are robbers of God; they are cursed;
the windows of heaven are closed for them, the devourer enjoys ashare in their finances. Satan takes a tithe from their salary by
force.
The tither meanwhile experiences the extreme opposite: they are
blessed, the windows of heaven are opened for them, and the
devourer is rebuked from their finances. We must be regular Tithers
and not on and off Tithers.
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Tithing was also part of Mosaic Law aimed at supporting the Levites
who were full-time, but it is important for us to know that tithing
started 430 years before the law of Moses was introduced. Tithing
was never limited to the law but we also read about tithing in the NewTestament. The Bible declares that if we do not tithe, we are robbers
and we are financially cursed. No amount of praying, fasting or
blessing from your pastor can help you out of this predicament. Be not
deceived by people going around teaching that tithing is outdated and
unscriptural. When tithes are given to Ministers of the gospel, they
are actually given to the head of the church, Christ our Lord. We must
give the tithe as an act of thanksgiving and worship to God.
Tithing is just the beginning of giving, tithing belongs to God, and it is
to say thank you Lord. Offering is determining the extent of yourharvest. You reap according to what you plant. If you saw sparingly
you shall reap sparingly, and if you plant Bountifully, you shall reap
bountifully. (2 Cor 9:6).
We need to tithe also from our capital and assets. This is scriptural
(Prov 3:9-10). When you sell your house, or business, you need to pay a
tithe on the gain you made. Even when you receive shares, an estate or
profit on investments, life policies, these represent income or capital
gain. You need to tithe on the profit you get. Everything that you have
belongs to God, give to God so that you can be blessed.
39.
Borrowing from the tithe
If you borrow some of your tithe because you are tight, you are
required to pay your usual 10% for the next month plus what you have
borrowed, plus 20% of what you have borrowed.
Leviticus 27:31 And if a man will at all redeem any of his tithe, he
shall add thereto the fifth part thereof.
It is therefore better not to borrow from your tithes.
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Tithe without expecting a return but as a form of thanksgiving,
obedience and worship to God. Tithing is for your own protection and
you are obliged to pay this portion of your income because that money
belongs to God. Let us live in full obedience to God and enjoy His
blessings in our lives.
6.2 Be a cheerful giver
Every man according as he purposeth in his heart, so let him give; not
grudgingly, or of necessity: for God loveth a cheerful giver. 2Cor 9:7
Giving is a form of worship. What you decide to give is a personal
decision coming from your heart, not under any compulsion. Giving is a
sacrifice to God. Something of very precious value that you give to
God in a form of an offering. An offering is what you give over and
above the tithe. Offering is what draws your near to God. It is
something that shakes you from your financial comfort zone. Giving is
a reflection of your of your attitude to God.
Types of offering
Numbers 28 mentions different types of offering. There can be
various reasons why people offer but the motive must be biblical.
People can give for the promotion of the gospel. People can make
special offerings (2Cor 8:2-4; Exodus 25:1-2; People can give to the
poor Prov 19:17; Matt 25:42,45) you can give to your fellow believers
(Gal 6:10), you are also expected to give to your enemies (Luke 6:27)when we give, we are not loosing, when we give we shall never lack, God
will increase our resources. We need to give abundantly. We need to
know that God will not entrust us with more wealth if we do not prove
40.
to be faithful with what we have. As a nation, we also need to know
that we have a social responsibility to give to poor people.
Disadvantaged communities have even a bigger challenge, and the =
challenge is to learn to move out of the dependency syndrome (where
things are done for you and you live on handouts) to independence
(where we must learn to give collectively to transform our
communities and to improve our lives and resources).
Acts 20:35 says: It is more blessed to give than to receive.
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Plant a Seed
Galatians 6:7
Do not be deceived, God is not mocked, for whatever a man sows,
that he will also reap.The word of God confirms the fact that if you saw, you must reap.
The principle is clear no sawing no reaping. If you plant one seed of
oranges on the ground how many seeds do you get back in one Orange?
Obviously the one seed has multiplied itself miraculously through
Gods plan of a hundredfold return. The same principle applies to what
we give to God. It is multiplied accordingly.
2Cor 9:6-7 Remember this: Whoever sows sparingly will also reap
sparingly, and whoever sows generously will also reap generously. Each
man should give what he has decided in his heart to give, notreluctantly or under compulsion, for God loves a cheerful giver.
The amount of your harvest is determined by you. What you put into
Gods multiplication process determines how much you get out. In
other words your input determines your output. It is also important
for us to note that God is impressed by quality giving and not quantity.
Your attitude when you give also plays an important role, God is
impressed by a cheerful giver. Remember God only multiplies what you
have put down. When you have planted a seed, exercise a bit of
patience like a farmer. Do not be tempted to go and dig out the seed
and check whether it is growing or not. Put your trust in God who is
your source at this timing the seed will yield the harvest.
41.
6.3. Start a Savings Plan
A good man leaveth an inheritance to his childrens. Prov 13:22. A
wise man has to plan his future is such a way that his family and
children are secured. We need to train even our children to lean how
to save money at an early stage. Children will be adults soon andparents must prepare them to start developing a habit of saving so
that when they earn their living they will be disciplined to act
responsibly on their finances. I would advice young couples to start at
a very early age to save for the future of their children. An example
is that of a couple who start taking out an investment savings on the
birth of their child and they continue to increase the premiums with
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an objective to give their child.
Plan and Save for your retirement.
Take a good retirement package that will be almost equal to
your salary.
Remember that towards retirement a greater percentage oryour money will be used towards medical expenses - plan for
your medical insurance as well.
Plan not to be in debt when you retire pay off all major
debts like the bond and other major debts.
Draw a will to protect your investments and appoint an administrator of your
Estate. Many people do not have a will, this leads to squabbles in the family.
6.4 When you make a vow keep it
Deut 23:21
When you shall vow a vow to the Lord your God, you shall not slack to
pay it: for the Lord your God will surely require it of you; and it would
be sin in you.
Do not betray God by making a promise that you later fail to fulfill,
this will dent your spiritual relationship with God. Be faithful and get
Gods blessings on your side.
Gods financial principles will make us prosperous if we obey and allow
God to be master of both our finances and property as well as our
lives.
42.
CHAPTER 7.
POSESS THE LAND
In Deut. 1:6 the Lord spoke to the children of Israel saying to them Ye
have dwelt long enough in this mount: this statement suggests that it is
action time! It is the time to change the mind; it is time to focus on new
ideas! and move in a new direction. God commands the Israelites to venture
into new areas around them and begin to explore and conquer them. In verse
8 God assures them that He has already made provision, they must posses
the land which He has already given to them as a nation. This statement is
very relevant to South Africans, it is time that Africans start breaking the
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tents where they have camped for a very long
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