The first piece of advice I have for the Hopeful family is not to get behind on their tithing

and savings. I would advise the family to make an automatic withdrawal every month, 10%
tithing and 10% into savings, so they're never tempted to spend that money. If the money is taken
out automatically, it will seem as though that money never existed for them to spend. Paying
their tithing will bring blessings from the Lord, and they should take every measure possible to
ensure that it gets paid. Paying yourself after will help ensure future financial stability, and it is
possible to get out of debt without using current savings.
I would also advise them to avoid further financial bondage. Avoid accruing more debts,
and this will help them get out of their current debt that much faster. Paying any amount of
interest is financial bondage, and they should avoid that as much as possible. It is fine to go into
debt for investments such as a house or car, but it is advised that those get paid off as soon as
possible so as to avoid unneccessary interest.
If the Hopeful family prepares financial goals in the interest of getting out of debt, it can
relieve some of the stress. They should prepare realistic and attainable goals and have a copy of
them that they can refer back to. This will help them stay on track to accomplish these goals, and
make it more apparent when they are accomplished.
The Hopeful family should keep record of all of their budgets and goals, as well as their
financial statements. They should keep all of their financial records, such as their tax,
investment, insurance, etc. Keeping track of all of their finances will help them know exactly
where it is their money is going, and allow them to plan or adjust them as needed to get out of
debt.
In order for the Hopeful family to build a strong financial position, they should save
money, buy appreciatingn assets (such as their house or other investments), get out of debt and

avoid additional debt. They should actively avoid paying more than they bring home. In fact,
they should spend less then they bring home. I'm sure they have heard that one should live
beneath their means. Just because you bring the money home, doesn't mean you are obligated to
spend it, so save what you can.
I would advise them to make a physical budget not a mental one and abide by it. It's
simple to make a mental budget, but it is also much harder to keep to it. A physical budget can be
either handwritten or online. Budgeting doesn't just mean writing something down once and
never looking at it again. Budgeting means that you write it down, and track all of your spending
throught that month. It means understanding the importance and the purpose for having the
budget in the first place.
Another way they can earn money in the long run would be investing in the stock market.
If they were to buy stock, they would own equity. The best strategy when it comes to the stock
market is to buy early, and sell later. They should wait years before selling their stock, to give the
value of their stock to go up. If they have the money for it, they should buy as soon as they can
for later in life.
A bond is more of a debt invesment. If they were to buy a bond, then the company they
bought it from would then have to repay that bond plus the interest accrued over an amount of
time. But, like the stock market, they would want to sell their bonds when the value is greater
than what they bought it for.
If they choose not to invest their money in stocks or bonds, there are different types of
investments they could make. Home ownership is a great investment to make, along with any
other form of real estate investments. They could also invest in personal property, such as gold
and jewelry or furniture pieces.

The best way the Hopeful family can avoid debt is to save before making any type of
purchases. Instant gratification is prevalent in our society, but buying a new car without
sufficient funds will inevitably lead to debt. They bshould actively try to avoid impulse buying.
Saving money before making a large purchase will help alleviate some of the interest that will be
paid in the future. Impulse buying leads to paying mych more than something is worth in the
long run.
They should consider how much credit they can actually afford. A lot of people use their
credit cards to make purchases that they otherwise could not afford. But what they fail to realize
is that they are paying for that and more every time they do this. Failing to pay off your debts at
the end of the month will lead to large amounts of debt as well as a diminishing credit score. If
the Hopeful family understands how much they can pay monthly for their credit cards, they can
avoid all of these things.
They should seriously consider making more than the minimum payments on their credit
cards. If they are only paying the minimum now, then they will be paying much more in the long
run. Making minimum payments leads to paying more interest that an item is worth, and
extending the time it takes to pay it off. It could take 20 years to pay off a $2000 stereo, with
nearly $6000 paid in interest!
As for their vehicles, I would advise them to only worry about paying off their current
one. I wouldn't suggest trading it in or making any more transportation purchases. Using the
rollover mathod for paying off their debt, they should be able to pay off their car faster than
previously anticipated.
In the future, once their debts are paid off, then there are some suggestions that can be
made towards new vehicles. They should consider the pros and cons to both buying and leasing

vehicles. If they are looking to drive newer cars all the time or constantly be trading them in,
then leasing would be the better option. But if they are looking to make a commitment and own
the car, then buying would be the better option.
They should also realize that the price of a car is rarely set in stone. There is almost
always the option for negotiation when purchasing a car, and they can use this to their advantage
if done correctly. If they go in knowing what they are willing to pay and sticking to it, as well as
doing comparitive shopping then they can be better prepared. They should also be willing to
walk out if nothing comes of the negotiation.
As for their home, I would suggest making an amortization schedule to determine how
long it will take to pay off their home, and how much faster they can pay it off if they add a small
amount of money to their monthly payments. An amortization schedule should contain the
following collumns:
1.Month you are making the payment. In professional schedules, these are often listed as
the actual month and year instead of just a monthly number.
2.The monthly payment amount.
3.The amount of the payment applied to interest due for that month.
4.The amount of the payment applied to the principal balance.
5.The remaining balance of the loan after the principal payment for that month.
This schedule will be helpful for all of their loans, not just their mortgage loan. If they
start with their loan that has the least amount of payments left and add just $50 to that monthly
payment, they will get it paid off sooner. Then, if they add that money to the next debt payment,
and so forth, all of their debt can be paid off years sooner than they thought.
If the Hopeful family can find an extra $50 to pay toward their debts each month, then

they will be able to payy off all of their debts faster. Once they get their smallest debt paid off,
they should then take that money they were using for that payment and add it to the next debt
payment. The first table below shows their current situation, and the second one shows what it
would be if they simply added an extra $50 to their monthly payments.

12.0%

Current
Payment
$158.00

Payments
Description
Remaining
48
Credit Card #1

15.0%

$34.67

36

Credit Card #2

$12,619.08 11.0%

$274.37

60

$19,225.00 6.0%

$280.85

84

$5,200.00
$1,969.78
$1,876.97
$49,612.40
$119,412.57

$200.00
$92.72
$65.07
$582.82
$1,149.00

28
24
36
142
147

Credit Card #3
Credit Union
Loan
Car Loan
Gas Credit Card
Medical Bill
2nd Mortgage
1st Mortgage

Amount

APR %

$6,000.00
$1,000.00

7.0%
12.0%
15.0%
9.5%
6.0%

$216,915.80

$2,837.50

Total debt

Amount

APR %

Current Payments
Description
Payment Remaining

$1,000.00

15.0%

$34.67

36

Credit Card #2

$1,876.97

15.0%

$65.07

36

Medical Bill

Current Payments
Payment Remaining
Add $50
Add the credit card
payment to the medical
bill

$84.6712.8586551

$149.7426.5769362

$1,969.78 12.0%
$5,200.00 7.0%
$6,000.00 12.0%
$12,619.08 11.0%
$19,225.00 6.0%
$49,612.40 9.5%
$119,412.57 6.0%

$92.72 24
$200.00 28
$158.00 48
$274.37 60
$280.85 84
$582.82 142
$1,149.00147

Gas Credit Card

Car Loan
Credit Card #1
Credit Card #3
Credit Union Loan
2nd Mortgage
1st Mortgage

$242.4640.2952172
$442.4654.0134983
$600.4667.7317794
$874.8381.4500604
$1,155.6895.1683415
$1,738.50108.886622
$2,887.50122.604903

$216,915.80

$2,837.50

Total
Debt

$8,176.30Total Debt

After the Hopeful family gets out of debt, they should use all of the money from their

previos payments for retirement funds. In order to do so, they should figure out how much they
will need to live comfortably when they retire. Once they know this, they should be able to
figure out how much they should deposit each month.
They can include social security and employer funds in their retirement planning, but they
shouldn't rely on them. They can choose between defined benefit plans or defined-contribution
plans, from their employer. The most popular being a 401k plan, which is a deefined-contribution
plan.
Once they have their retirement money saved, then the best thing they could fo is only
live off of the interest earned. This will allow them to always have their principal amount
preserved, and never worry about spending it all. Saving for retirement will have been for naught
if they outlive their retirement funds.