We have been counseled to Be Prepared, to save and stay out of debt. Sometimes that seems impossible. I’m not just talking about homes or cars or those types of debt, but the sometimes inevitable debts that are thrown at us. If we are more prepared we are able to handle those types of debts better. As I said before, it is not as simple as some think it is.
We are not all blessed with the ability to have financial resources at our fingertips whenever we need them. Many find themselves behind the eight-ball because of poor choices or uncontrolled circumstances. Some also find themselves in debt for other reasons…this does not mean that getting back to a debt-free or debt less type of living is not possible.
The First Presidency Counsels:
“We encourage you wherever you may live in the world to prepare for adversity by looking to the condition of your finances. We urge you to be modest in your expenditures; discipline yourselves in your purchases to avoid debt. . . . If you have paid your debts and have a financial reserve, even though it be small, you and your family will feel more secure and enjoy greater peace in your hearts.”
The First Presidency, All Is Safely Gathered In: Family Finances, Feb. 2007, 1
Successful family finances begin with the paying of an honest tithe and the giving of a generous fast offering. The Lord has promised to open the windows of heaven and pour out great blessings upon those who pay tithes and offerings faithfully (see Malachi 3:10).
AVOID DEBT
Spending less money than you make is essential to your financial security. Avoid debt, with the exception of buying a modest home or paying for education or other vital needs. Save money to purchase what you need. If you are in debt, pay it off as quickly as possible.
USE A BUDGET
Keep a record of your expenditures. Use this information to establish a family budget. Plan what you will give as Church donations, how much
you will save, and what you will spend for food, housing, utilities, transportation, clothing, insurance, and so on. Discipline is key to living within your budget.
BUILD A RESERVE
Gradually build a financial reserve, and use it for emergencies only. If you save a little money regularly, you will be surprised how much accumulates over time. Our family saved change for about a year, and found that we had nearly $300. What we realized is that because we had used some of the change, we had shorted ourselves alot of money that could have been saved.
TEACH FAMILY MEMBERS
Teaching family members the principles of financial management, and involving them in creating a budget and setting family financial goals helps ech member to understand finances better and allows them to learn at an early age how to plan and live within a budget. Teach the principles of hard work, frugality, and saving. Stress the importance of obtaining as much education as possible.
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