Strategies to Eliminate Debt
As of 2022, our oldest child of nine, Rhea Grace, is 15. Perhaps God will bless us with more. We have always been a single-income family. I was a schoolteacher when Katie and I married; then I became a full-time youth pastor. And in 2010, I moved from that role to become the senior pastor at Woodland Christian Church in Woodland, Washington. At no time have we ever lived off anything more than modest salaries. God has provided; we have also tried to be wise with our finances. Let me share some of the strategies we have used as a large homeschooling family to eliminate debt.
Live Below Your Income
The worst approach you can take with your money is spending it as though you make more than you do—living off $7,000 per month when you make $6,000. This will increase your debt month by month. The reasonable approach is spending at your income level—living off $6,000 when you make $6,000. But if you make $6,000 per month, is the solution to live as though you make that amount? No. This will have you living paycheck to paycheck, spending all the money you make. You won’t increase your debt, but you also won’t eliminate any debt. The best approach is spending as though you make less than you do—living off $4,000 when you make $6,000. This will allow you to pay off almost $100,000 in four years (4 years x 12 months x $2,000 per month).
Eliminate Unnecessary Expenses
Here are some sample budgets. Keep the previous strategies in mind as you make a list of expenses. Try to eliminate whatever is unnecessary, such as going to the movies and eating out. Cancel subscriptions you don’t need, such as cable television and extra phone lines. When you travel, bring food with you. Preparing meals at home saves money. While Katie and I were trying to get out of debt, if we ate out for a birthday or anniversary, we usually used a gift card. It may seem impossible to live without certain pleasures you’ve always enjoyed, but remember: The more expenses you eliminate, the faster you’ll be out of debt.
Buy Used
As a ministry family, we’ve had lots of clothes and other items given to us. When all our bases weren’t covered, we were able to find what we needed at yard sales and thrift and consignment stores. When you need “new” stuff, you can spend a fraction of the price buying used.
Stay Home
If you asked those who are closest to us, many people would say, “Scott and Katie never go anywhere!” Traveling is expensive. Eat, play, and laugh at home. You’ll save on gas, lodging, and put less wear and tear on your vehicles. There are three keys to success with this strategy.
First, build relationships
When your children feel connected to you and each other, they will be more interested in staying at home because this is where they can be with those who are closest to them.
Limit screen time: If “family time” involves a television or computer, kids are more likely to feel closer to the electronic device than their family members.
Look for ways to connect: Can Friday evenings become “game night” or “make your own pizza night”? We purposefully end each day in the living room with everyone relaxing, visiting, and mellowing out before evening prayer and bedtime.
Second, avoid conflict
It is especially important for parents to have a healthy marriage because they set the example and tone in the home. The love and peace, or contention and strife, between husband and wife trickles down to the children. Children want to be in a home filled with harmony, but they will want to move away from one filled with quarreling.
Third, invest in your home
Doesn’t this conflict with our goal of saving money? Yes, but sometimes we need to spend money to save money. By staying home you’ll save money, and you’ll be more inclined to stay home if you have invested in it. Use some of the money you saved from not traveling and invest in your home to make it a place you and your family enjoy.
Avoid Lavishness
Even when you invest in your home (or making any purchases, for that matter), you should avoid extravagance. You can be nice, tidy, spacious, comfy, and modest. When eliminating debt, settle for simplicity. If you purchase new furniture, make sure it’s because you need new furniture. Buying new furniture simply because you’re bored with your current set is a waste of money and reveals a discontent heart. We still have much of the same furniture from when we got married.
Proverbs 13:7 says, “There is one who makes himself rich, yet has nothing; and one who makes himself poor, yet has great riches.” Some people appear wealthy through their expensive homes, vehicles, and vacations, but if they’re buried in debt, they “[make themselves] rich, yet have nothing.” If their debt exceeds the value of their possessions, then they have less than nothing because they’re in the negative. Others “[make themselves] poor” through their humble living, but they have “great riches” because they have money saved and no debt.
Avoid “Going Big”
Holidays, birthdays, and anniversaries can really add up. Our honeymoon was free because my parents let us use their timeshare in Palm Springs. How sad that many young couples limp out of the starting gate financially. They begin their marriage with thousands of dollars of debt, not from purchasing a home or car, but from their wedding and honeymoon. Save the “dream trip” for when your debt is paid off. Make it a reward.
For birthdays for each of our children, we buy one gift, and we ask the grandparents to buy only one gift. We also celebrate the child by having dinner and a cake that Katie prepares. For Christmas, our children buy their siblings small gifts. Katie and I have mutually agreed not to spend much on each other. We try to do most of our shopping after the holidays are over when things are discounted. For example, we have a tradition of buying all the discounted candy and eggs after Easter and having our own hunt then.
A minimalist approach not only keeps expenses and expectations low, it also minimizes stress and covetousness. For some people, the joy of special occasions is overshadowed by their financial anxiety.
Throughout the year we allow our kids to be bored instead of trying to entertain them. Not only does this save money, it causes them to find things to do. We encourage them to engage in activities that foster creativity, such as music, art, reading, writing, and building. We purchase books, musical instruments, and art supplies. Because we want our kids to play outside, we also invest in bikes, skates, scooters, jump ropes, and sidewalk chalk. We haven’t introduced them to video games.
Most children have toys they don’t play with. Figure out which toys your kids like and invest in those. For us, Legos, Duplos, and K’Nex have shown to be tried-and-true. We typically avoid toys that require batteries or electricity.
Avoid Expensive Hobbies
There’s something wrong when people are thousands of dollars in debt yet they’re spending thousands of dollars on activities, hobbies, and events that they really cannot afford. Until you are debt-free, you should try to avoid those activities that cost a lot of money.
Enjoy Cheap or Free
Have you been led to believe that you must spend money to enjoy yourself? There are many activities that are free or nearly free. Find something that you and your spouse and family love that doesn’t cost much, or better yet, is free. Here are some examples:
Visit a museum, aquarium, or zoo—Many of these offer free admission on certain days.
Read—By yourself, with your spouse, or to your children. Combine this with another free activity, such as taking a trip to the library or bookstore. Many of these have children’s play areas.
Watch something cheap or even free—While you’re at the library getting your next book, you can also check out a DVD.
Play games—A board game, puzzle, or deck of cards is a wonderful way to be together and pass the time.
Attend church activities—Weekly Bible studies and home fellowships are free and have added spiritual benefits.
Volunteer—Serve at your church, a soup kitchen, or pregnancy center. If you have children, they can be involved, which teaches them important lessons.
Visit the farmers’ market—Take in the sights, sounds, tastes, and smells while supporting your local community. Sometimes you can find fruits and vegetables in larger quantities and for cheaper prices than at the grocery store.
Spend time outdoors—Take a walk, jog, garden, have a picnic, hike, or go on a bike ride. If you want to do something athletic you can play basketball or join a sports team in your community.
Create—Cook a meal, make a photo album, draw, paint, or write.
Develop a skill—There are free tutorials online to learn new skills, such as a foreign language, knitting, photography, or a musical instrument.
Be hospitable—Invite friends or neighbors to your home. Make it a potluck to ease the labor and financial burden for everyone.
Be productive—Clean the house, finish a project that’s been nagging at you, plan a trip, polish your resume, or write a letter.
Host a yard sale—Get rid of unwanted clothes, furniture, and other items while making money, decluttering, and blessing others.
Keep the End in Mind
Eliminating debt is difficult, and applying this strategy will help you apply the other strategies and give you the needed motivation to keep going. We paid off our mortgage after seven years by dreaming about what it would be like to be debt-free:
Bills kept (primarily) limited to utilities
Purchases made without having to worry if we had the money we needed
More money put toward savings and giving
No longer being slaves to a lender
We kept these blessings in mind while telling ourselves no purchase, trip, or luxury was worth trading for them. Keep reminding yourself of the joys you will experience when you are debt-free.
The above post is an excerpt from Scott LaPierre’s book, Your Finances God’s Way. Scott is the teaching pastor of Woodland Christian Church in Woodland, WA, an author, and conference speaker. He holds an MA in Biblical Studies from Liberty University. Scott and his wife, Katie, have nine children and they are passionate homeschooling advocates. Scott is a former schoolteacher and Army officer. Learn more about Pastor Scott at his website: www.scottlapierre.org.