Tithing while in Debt??

[newbie]

I am a recent college grad with about $30,000 in school loan debt along with $9,000 debt from my car. I am trying to get out of debt but each month I am only able to pay the minimum on my loans since I am living on a first year teacher's salary. I want to honor God with my finances, so should I tithe or put my tithe towards paying off debt??

[4jacks]

I'm pretty sure there was a thread on here somewhere that raised the same question. It drew differing opinions. I always lean towards tithing 10% in all circumstances. It's about relying financially on God, not relying on your income.

[Pennysaver]

I agree that I think you should still tithe. You will be amazed at how God will bless you if you tithe faithfully regardless of your financial circumstances. I have heard of many stories of how God comes through when we are obedient.

[Jonathan K]

The best place to look for guidance is in God's Word:

"Honor the Lord from your wealth and from the first of all your produce; So your barns will be filled with plenty and your vats will overflow with new wine." - Proverbs 3:9-10

"Thus all the tithe of the land, of the seed of the land or of the fruit of the tree, is the Lord’s; it is holy to the Lord." - Leviticus 27:30

10% or a tithe is the starting point. Once you get out of debt you will be able to save more, give more, and live better.

“'Bring the whole tithe into the storehouse, so that there may be food in My house, and test Me now in this,' says the Lord of hosts, 'if I will not open for you the windows of heaven and pour out for you a blessing until it overflows.'" - Malachi 3:10

The promise here is God will supply your needs to overflowing. We can attest that as we have put God first in our finances He has blessed us beyond our wildest dreams.

"Owe nothing to anyone except to love one another; for he who loves his neighbor has fulfilled the law."- Romans 13:8

1) Tithe, 2) pay your bills on time, 3) cut back on your costs (cable/satellite bill is a great place to start), 4) sell some stuff you don't use, 5) save for an emergency fund, and 6) pay off your debt ASAP (starting with the smallest debt first). Consider that if you are paying interest of 20-30% on your debt and your investments will make you 8-15% it might be better to pay off your debt before continuing to invest for retirement.

Pay your debt back quickly and intentionally. But also first save for an emergency fund $500 if you make less than 24K a year and $1000 if you make over 24K a year. Then pay off your debt as fast as you can. Use the debt snowball strategy. It works trust me. My wife and I did this and in two years we became debt free. We cut expenses, sold stuff, and lived frugally. We spend less than we make.

"The rich rules over the poor, and the borrower becomes the lender’s slave." - Proverbs 22:7

The quicker you pay off your debt the better. We can do so much more for others and our lives are not stressed because of finances.

"Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver." - 2 Corithians 9:7

I will post separately as to a scenario you may be in.

In Christ,
J

[Jonathan K]

Newbie,

Remember when budgeting and getting rid of debt you will not always live like this. This is a phase. It's called doing whatever you can to get out of debt fast. But as Dave Ramsey says: "Live like no one else so you can [eventually] live like no one else." That will mean some changes. You can either A) cut expenses or B) add income. It's easier to cut costs than to add income. And I have aunts, uncles, and grandparents who are all educators. I know or at least can somewhat relate to what you go through every day.

According to this article the average starting salary for a school teacher is: $31,507.08

Assuming a tax rate of 13% you will pay $4,095.92 in taxes. That leaves $27,411.16 of yearly income or $2,284.26 a month post taxes.

Without knowing where you live it is difficult to determine how much rent you would pay. Also if you have a roommate that would affect rent... Here's a little budget I made with those numbers in mind.

Budget

----------------------- Current Projected ---- Proposed New
Tithe --------------------- $229.26 ------- $229.26 ----- Continue tithing or start tithing!
Savings -------------------- $0 ------------- $100 ----- Start saving a little each month.
Rent -------------------- $550.00 --------- $550 ----- Maybe look into getting another (or if living by yourself a) roommate?
Utilities (Wa/Ele) ------- $200.00 ------- $150 ------- Turn up the air a few degrees and save some money.
Internet ---------------- $50.00 ------------- $0 ------If you can stand it (and don’t' have a contract) get free WiFi at Starbucks.
Cell Phone ------------- $75.00 ----------- $50 ----- Lower your cell phone plan and limit your minutes. Texting = good option
Groceries ------------- $205.00 ---------- $180 ----- Pinch pennies, buy in bulk, buy store brands, use coupons
Eating Out ------------- $95.00 ---------- $45 ----- Eat out less and use the money to pay your debt.
Gas -------------------- $120.00 --------- $120 ----- No suggestion for this. Got to get to and from work, etc.
Gym Membership ----- $50.00 ------------ $0 ------ Local malls, your neighborhood, or parks are great for exercise.
Blow Money ---------- $10.00 ------------- $10 ----- You need this category to just blow money on something as a treat.
Car Payment --------- $350.00 ---------- $650 ----- Allocate the extra money $300 to your car payment. Pay it off as fast as you can!
School Loan --------- $350.00 ----------- $200 ----- I am assuming your minimum payment is $200.

Total Expenses ----- $2,284.26 --------- $2,284.26
Total Income ------- $2,284.26 --------- $2,284.26
Difference ----------- $0.00 ------------- $0.00

You might even consider getting a job in the summer for the first 3-4 years of your teaching career or more. I had a roommate who was a teacher and had a job in the summer and brought in an extra 3-4k each summer.