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Last week, we highlighted the importance of responding to financial setbacks from a spiritual perspective – allowing God to stretch and grow us from the difficulties we encounter. Recalling that God is the owner of all the resources he has put in our care, and persevering in our walks with Him.
This week, we look at the next step – responding in practical ways to the very practical challenges that these setbacks present. What are some keys to recovery and getting back on track financially?
The first step is to understand our situation thoroughly. If we lost income, how much did we actually lose? If we took on debt, how much did we take on and what does that mean for monthly payments and cash flow?
Once we understand the financial reality, the next step is to address what that means for our Spending Plan. If we used up our Emergency Fund, what adjustments will be needed elsewhere to free up the money to build that fund back up? If we took on additional debt, how long do we want to take to pay that debt off and what adjustments are needed to make that happen?
Third, we need to know when we’ve recovered and plan to get back to the financial and life priorities God has given us. If we make spending adjustments to build back up the emergency fund or to pay off new debt, when do we project for that to be completed? And how will we re-adjust so that “emergency mode” doesn’t become the new normal?
Host James Lenhoff leads us through a thoughtful consideration of the practical side of responding to financial setbacks.