Thoughts from Financial Peace University

At Dave Ramsey's Financial Peace University the other night, a young man earnestly asked, "If I payoff all my debt and quit using credit and lose my credit score [which is the Dave Ramsey plan], and then later I have an emergency that consumes my entire emergency fund [of three to six months' expenses], how will I be able to live without credit?" He asked this in our small group setting, but it came up as the session was ending and the entire class was coming back together, so the small group did not have the opportunity to discuss it. As we were walking away a couple of verses came to mind.

I have been young, and now am old;

Yet I have not seen the righteous forsaken,

Nor his descendants begging bread.

He is ever merciful, and lends;

And his descendants are blessed.

- Psalm 37:25, 26 (NKJV)

And he said:

"Naked I came from my mother's womb,

And naked shall I return there.

The LORD gave, and the LORD has taken away;

Blessed be the name of the LORD."

- Job 1:21

It was a sincere and difficult question this young man was asking. The "emergency" he had in mind was a extended job loss of six months or more. But, for me, any answer has to have its roots in the realization that God loves his children and amply provides for all their needs. And even if His "provision" comes to carry us through a valley of Job-like poverty and desolation -- even if it is God's will to bring us to the end of our days in that condition -- the LORD is still good, and His name is Blessed.

Having said that, when you stop borrowing money, you don't have nearly as much strain on your cash flow and you would be surprised how far you could stretch "an amount equal to about three to six months of expenses." If you have been debt free for some time, and have been saving money faithfully, you may find yourself with resources that far exceed the amount that you have designated for emergencies. And when you are debt free you can live on less. This gives you a great deal of freedom in selecting employment. Nobody wants to live on $10/hour, but if you have no debt, and you can't find anything else, even $10/hour may be sufficient for a season. You don't need the "big bucks." You don't have to play an "all-or-nothing" game.

As Dave says over and over again... when you find "financial peace" you don't go to sales meetings (if you are in sales) or job interviews (if you are looking for employment) with an oder of desperation hanging all over you. This is a game changer, and it will help effect positive outcomes. But even if it doesn't... even if you go to the grave in poverty... in the resurrection the baptized child of God will find life and peace and joy in Christ Jesus. Ultimately financial peace has to come from the only place where any real peace can be found.