Archive for May, 2012

Cash flow can be more important than debt reduction

My wife and I talk about finances on a fairly regular basis. Recently during one of our conversations, we discussed the pros and cons of paying off a particular debt versus placing the earmarked money in our savings account. My wife was of the mind that we needed to pay off that debt immediately, however, I was concerned that paying off the debt might leave us in a precarious situation as far as our cash flow – the title of this post probably indicates who won that argument. My point is that paying off debt is a good thing and can almost be a bit of a rush. However, if you pay off a debt, but leave yourself with no surplus cash flow, no emergency fund or limited savings, you could be in worse trouble when unexpected expenses pop up.

Is debt reduction a greater priority than tithing? P. 2

In my previous article on this subject, we looked at several reasons why the believer should prioritize tithing before debt reduction. Note that I am not saying that we should neglect our debts – if we promise to repay something, we must repay it. Matthew 5:33 tells us that when we make a promise, that promise should be as good as done. However, if you must choose between paying extra on a debt or giving your tithe, the tithe comes first.

Here are two more reasons why the believer’s commitment to tithing should be greater than his commitment to debt reduction: