FRequently asked Questions
This page is dedicated to answering some of the most common questions that we have heard from our class members. If you can't find the answer to your question below, please feel free to fill out the form below and we can answer it!
Q. How do you get through college debt free?
A. With the cost of college at an all time high, how in the world are you supposed to get through college debt free? It seems impossible right? Well, not so fast my friend. Everyday I hear of another person who sacrificed and worked hard to make it all the way through college debt free. How did they do it? Here are a few different ways to get through college debt free.
It is possible to make it through college debt free. It might not easy or fun, but it will be worth it. For more help, check out Josh Lawson's book, "Don't Get Suckered - How to Graduate College Debt Free... and with Your Shirt."
A. With the cost of college at an all time high, how in the world are you supposed to get through college debt free? It seems impossible right? Well, not so fast my friend. Everyday I hear of another person who sacrificed and worked hard to make it all the way through college debt free. How did they do it? Here are a few different ways to get through college debt free.
- Excel in High School - It might seem like common sense, but the best way to get through college debt free is by making great grades in high school. This means studying harder and longer than all of your friends. It also means trying your hardest on the standardized tests and especially the PSAT. Spending a few hundred dollars on these tests and practice books will end up earning you thousands in scholarships down the road.
- Grants and Scholarships - Each year billions of dollars are given away in scholarships and grants, but did you know that each year billions of dollars in grants and scholarships also go UNCLAIMED! It's free money. Make this your full-time job during your Christmas and Summer breaks and apply for all the scholarships you can. Check out Zinch andFastweb for more help.
- Work - The last time I checked, you can still pay for college with money from your job. Whether this is money to pay for tuition, books, or spending money, millions of young people choose to work through college each year. And they survive. Your grades will be fine and all your friends will still be there. The only difference is you won't have a mountain of student loan debt after college. Work part time during college if you can, or during all of the Christmas and Summer breaks. Many businesses will cover your tuition if you commit to work for them after college for a set amount of time.
- Community College- Take the first couple years of college at a local community college. You will save tens of thousands of dollars in tuition by taking care of your requirements. I would highly encourage this for anyone who isn't sure what they want to study at college.
It is possible to make it through college debt free. It might not easy or fun, but it will be worth it. For more help, check out Josh Lawson's book, "Don't Get Suckered - How to Graduate College Debt Free... and with Your Shirt."
Q. What questions should I be asking before I buy a home?
A. The Bible never comes out and says, "In order to love the Lord your God with all your heart and soul, you shall have a house that is no larger that 2,500 square feet and with mortgage payments no more than 34% of your income."
Buying a home can be a great investment, but all too often people buy a home too quickly and don't count all the costs. So below we've listed some tough questions to ask yourself before you buy a home.
Heart Questions to Ask:
A. The Bible never comes out and says, "In order to love the Lord your God with all your heart and soul, you shall have a house that is no larger that 2,500 square feet and with mortgage payments no more than 34% of your income."
Buying a home can be a great investment, but all too often people buy a home too quickly and don't count all the costs. So below we've listed some tough questions to ask yourself before you buy a home.
Heart Questions to Ask:
- Am I content with where I currently live?
- Be honest with yourself about how much media and what others have is affecting your desire for a new place
- Will buying a home put unneeded pressure on your family, marriage, or financial life?
- Finances are the number one cause of stress and tension in a marriage- Now just throw in there the largest financial decision of your life and you have a great recipe for even more tension!
- How much house do I really need?
- When put in contrast to the questions of "how much house do I want" or "how much house will the bank allow me to have" we begin to see just how big of a gap we live in between our needs and wants
- Is this the right timing for us to buy a home?
- Even though it might be realistic for you to purchase a home, sometimes it might not be the best time
- Do I have an emergency fund in place?
- What happens when the washer goes out? What happens when the car's transmission goes out? You need to have some type of fund in place for when the "unexpected expected" happens.
- We encourage you to have an emergency fund of 2 to 9 months worth of bare bones expenses. If you have a home, then you want to make sure that you have an emergency fund that can cover your mortgage for several months in case you lose your job.
- Am I including all of the costs of owning a home in my budget?
- Purchase price, closing costs, house maintenance costs, increasing property taxes, etc. are all costs that we often don't calculate when just looking at the sales price of a house.
- When buying a home there are costs that you don't have to pay when you are renting that can blow your monthly budget right out of the water! You think you hate renting? Well, you will hate living in a house that you can afford, I promise you.
- Can I rent for a period of time while saving, so that I will be at a more secure place financially?
- While you are not having to pay all the expenses to upkeep your own house, put this money aside into a savings account.
- Can I actually afford this?
- We encourage people to keep their house payments anywhere from 25% to 35%
- Also, pay as large of a down payment as possible- with a goal of 20% or more (while still retaining an emergency fund)
- Have enough money to pay for the closing costs and fees with cash- otherwise you will be paying this out over 15 or 30 years with interest
- The purchase price should be no more than two-and-a-half times the family's gross annual income- but using only the main breadwinner's income
Q. Should I consolidate my student loans?
A. This is the one area of debt that we think it IS okay to consolidate your student loans. Mostly because you will be working with large amounts of debt and the interest rates are going to be in the same range.
A couple things to remember:
A. This is the one area of debt that we think it IS okay to consolidate your student loans. Mostly because you will be working with large amounts of debt and the interest rates are going to be in the same range.
A couple things to remember:
- You can only do this once. So, wait until you have all of your loans together and you are not going to be getting any more.
- Work to get a fixed-rate. Variable rates will end up costing you more in the long-run, especially since you can only consolidate once.
- Don't extend the life of the loans. Once again, this will end up costing you more money in the long run.
- GET INTENSE AND PAY THEM OFF! Just because you consolidate does not mean that you can let them linger around. Don't believe the myth that you can make more money using the money somewhere else because nowhere else will you have a guaranteed return that equals the interest rate that you are getting rid of.
Q. Is debt a sin?
A. The past couple of decades there has been an incredible movement in our country to push back against the tide that debt is normal. Many people have been ruined by debt, so they have become the biggest proponents of a debt-free lifestyle.
Now, we are all for living free from debt, but many people will go so far as calling debt a sin. So is it true? Is debt really a sin?
While the Bible discourages people from going into debt and says that you are actually a slave to the lender, the Bible never overtly refers to debt as a sin.
However, the Bible does refer to the heart issues that often lead us into debt - like gluttony, envy, pride, and comparison- as sin. So the better question for us to ask is not "Is debt a sin", but instead is "why am I going into debt?"
Are you going into debt to try and make money fast? Are you trying to buy something you can't afford that isn't really a necessity? Are you leveraging out your family's future and happiness?
Those are the bigger questions I would start by asking yourself.
A. The past couple of decades there has been an incredible movement in our country to push back against the tide that debt is normal. Many people have been ruined by debt, so they have become the biggest proponents of a debt-free lifestyle.
Now, we are all for living free from debt, but many people will go so far as calling debt a sin. So is it true? Is debt really a sin?
While the Bible discourages people from going into debt and says that you are actually a slave to the lender, the Bible never overtly refers to debt as a sin.
However, the Bible does refer to the heart issues that often lead us into debt - like gluttony, envy, pride, and comparison- as sin. So the better question for us to ask is not "Is debt a sin", but instead is "why am I going into debt?"
Are you going into debt to try and make money fast? Are you trying to buy something you can't afford that isn't really a necessity? Are you leveraging out your family's future and happiness?
Those are the bigger questions I would start by asking yourself.
Q. What if I don't want to use cash to pay for things?
A. Over the years, we have found that one of the best ways to stay on budget is to use cash for those categories that are discretionary - or you have the ability to spend whatever you want on. Some of these categories include groceries, dining out, personal allowance, and clothes.
But we often hear in our REALIGN classes that people don't like the idea of carrying around a ton of cash. They either feel like it isn't safe or they are afraid that they will lose it. If this is you, then we encourage you to purchase a gift card for the stores that you normally shop at for groceries.
For dining out, you can still use gift cards, by purchasing a card from a store like Walmart or Target. However, you want to make sure that these gift cards don't allow for overdraft charges.
If you are having a tough time with cash or the gift cards, then it is always an option to go back to the bartering system! Then you will really know what you can or can't spend. But I hear fur isn't going for much these days.
A. Over the years, we have found that one of the best ways to stay on budget is to use cash for those categories that are discretionary - or you have the ability to spend whatever you want on. Some of these categories include groceries, dining out, personal allowance, and clothes.
But we often hear in our REALIGN classes that people don't like the idea of carrying around a ton of cash. They either feel like it isn't safe or they are afraid that they will lose it. If this is you, then we encourage you to purchase a gift card for the stores that you normally shop at for groceries.
For dining out, you can still use gift cards, by purchasing a card from a store like Walmart or Target. However, you want to make sure that these gift cards don't allow for overdraft charges.
If you are having a tough time with cash or the gift cards, then it is always an option to go back to the bartering system! Then you will really know what you can or can't spend. But I hear fur isn't going for much these days.
Q. Should we have separate checking accounts?
A. We believe that once you are married, you become one as a couple, therefore you should merge all of your accounts. This is challenging, but once you get married nothing is really "mine" but "ours."
Having one checking account also prevents hiding money, and allows for more openness and honesty.
You should set up one person to be the manager of the bank account, but remember that this person does not have "supreme authority." Marriage is about serving one another's interests and coming into agreement on what should be done with "our" money.
A. We believe that once you are married, you become one as a couple, therefore you should merge all of your accounts. This is challenging, but once you get married nothing is really "mine" but "ours."
Having one checking account also prevents hiding money, and allows for more openness and honesty.
You should set up one person to be the manager of the bank account, but remember that this person does not have "supreme authority." Marriage is about serving one another's interests and coming into agreement on what should be done with "our" money.