This book is about how Andrew I.

Luison, a struggling businessman successfully achieved a

debt-free lifestyle. He started as a fresh graduate from Germany who came home to the Philippines
to help with the family business. He did not receive any salary but was given an allowance in
exchange for his labor. At that time, he was living comfortably with what he was getting and he was
totally oblivious to tithing. He did not know the curse for neglecting to tithe. As stated in Malachi 3:8-
9, anyone who does not give tithes and offering to the Lord is under curse. However, the succeeding
verses tells us that there is both a promise and protection when we give out tithes and offerings. A
promise that God will open the windows of heaven and will pour out a blessing so great we will not
have enough room for it. Also, God promises that our crops will be abundant for He will guard it
from insects and diseases.
The author then shared how tithing has been the best decision he made with his wife. It taught
them about faith and God’s faithfulness to provide. Their business grew, they were able to plant
churches and helped start a school all because they trusted God and gave their tithes. The struggling
businessman was able to turn his life around by simply trusting God for provisions and faithfully
giving his tithes. As time passed his business grew into an empire known today as CITYLAND.
Through the 36 years of Cityland’s existence, all primary investors are still faithfully giving their
tithes to the Lord.
Next, the book mentions about Five Financial Traps. The first one is Lack of Knowledge. Some
people nowadays are not equipped with the relevant information on how to manage their resources
or money. The concept of saving and budgeting their monthly income is foreign to them. It is for this
reason that they fall into financial pitfall, which is DEBT. In Proverbs 22:27, we are warned that a
borrower is always a slave to the lender.
The second trap is Easy Credit. Easy credit comes in many forms like, installment plan for
gadgets and household appliances, credit cards, 5-6 etc. Because people are unable to budget their
salaries wisely and are easily enticed by luxuries they don’t actually need, they tend to borrow money
which is payable in installments or monthly. This is akin to financial slavery. They are given false
security that no matter how much they spend, money will always be available because there is always
someone willing to lend money.
The third trap is High Interest Rates. It is a reality in our everyday life that bills will have to
paid, food is to be served on the table, and basic needs have to be met. Some people spend their money
without properly accounting for their basic needs and splurge most of the money they have on their
wants. Due to desperation, even if the interest rates are high people are still drawn to borrow from
this lenders and this leads to their downfall.
The fourth trap is Guaranteeing Other’s Debt. Some people incur loans because they think
they can help by borrowing for others. “Pakikisama” is a common Filipino trait which leads many of
us to give in to a request to guarantee somebody else’s debt. According to the bible, this is not a wise
thing to do. Proverbs 11:15 states that if you have put up security for a friend’s debt or agreed to
guarantee his debt, swallow your pride; go and beg to have your name erased.
Last trap is Incurring Credit and Debt. Credit card companies offer sweet deals to consumers
to entice them in getting their own. Credit card is not bad in itself. It is the use of the credit card,
which will determine whether it is useful or harmful to a person. The most harmful and most
pervasive financial trap is the unwise use of credit card. The author reminds us that there are dangers
in the use of credit card. First, it lulls you into thinking that you have money even if you really don’t.
Second, you end up buying something you don’t have cash to pay for. Lastly, you tend to buy more,
pay more, worry more and fight more.
A credit card gives the holder a purchasing power even if he doesn’t have a single cent in his
pocket. The maxim “Do not spend beyond your means.” does not apply to him because he has a credit
card. He can get anything on credit. Thus, he can give in to his every whim and caprice. This piece of
plastic is widely advertised as a means to incur debt with zero interest but the author showed us how
a credit card owner is swindled into paying more. A month after the holder bought an item he realizes
that he does not have enough money to pay for it so he pays the minimum amount. If he doesn’t pay
his bill in full by the due date, the credit card company will impose an interest of 3 to 5 percent (or
36 to 60 percent per year) and late payment charges of 7.5% per months (that’s a whopping 90%
interest per year) for every month overdue. For three months, the interest compounds 30% interest!
Once the holder defaults, his peace of mind jumps out of the window. First comes the barrage of
letters informing you of the magnitude of your debt and a warning of a lawsuit filed against you if
you continue to default. Then comes the phone calls and in the end, the lawsuit itself. In addition,
some marriages suffer when one of the couple is already man-deep in debts. The hard truth is,
sometimes it even leads to broken homes.
The First Principle to a Debt-free Lifestyle involves you as an Administrator and not an Owner
of God’s resources. I agree with the author that God owns everything. It is expressed in the bible,
specifically in Psalm 24:1 that “The earth is the Lord’s and everything in it. The world and all its
people belong to him.”
These reminds us that we do not own anything in this world. You might think, what about
that house or car that I just bought, or that salary I just received from working diligently for a month
or that cellphone I received as a gift for my birthday. Technically, they all belong to me. That thinking
is what God wants us to eradicate from our system. All that we have are entrusted to us by God and
as administrators of this blessings, we are expected to be careful to work according to His wishes.
Since we are not owners, when big problems arise the owner is there to help us get through it. We
can always go to him for help and guidance through prayers.
The Second Principle is to Budget instead of Impulse Spending. The author is simply telling
us that no matter how meager our salary is, we must always plan the way we spend it. Income and
expenses must always meet to avoid incurring debts. You might say that millionaires don’t need to
budget their money because they have a lot. That is where you are wrong. A simple search in the
internet will show you that a lot of millionaires has gone bankrupt because they were not able to
spend their money wisely. I agree with the author when he said that it is not about how much money
you earn but by how much you save.
The author presented a list of steps for the proper budgeting of our money.
1. List down all your income – salary, bonuses, love, gifts, consultation fees, etc.
2. List down all your expenses every day for the next thirty days.
3. Categorize the kind of expenses you have listed down.
4. Determine which categories are priorities or the most necessary expenses.
5. Determine how much you want to spend on each category per month.
6. Stick to the budget as if your life depended on it.
He made a note to remind the readers who has children to explain “the Budget” to their children
while they are young so they can practice wise-spending too.

Next on the list of Principles is to Cut your Credit Card (if necessary). As discussed early on,
a credit card is not bad in itself; it is the unmindful use of plastic that is detrimental to us. There is a
warning for credit card holders that if you can not pay your monthly bill in full, it may be best to cut
your credit cards to end the vicious cycle of debt upon debt. Also, the author warns us against the
peril of using your credit card to borrow money to help someone else. Many have fallen into this trap,
a friend of mine for one borrowed a sum of money through her credit card to lend it to someone else.
When it was time to pay the debt, her debtor was nowhere to be found leaving my friend the burden
of paying the money she borrowed.
We must live by the principle that if God wants us to give, He will give us money to do so.
God never asks us to give money we do not have. If you do not have money to help another, simply
apologize and say that you cannot help.
Tips for using a credit card:
(1) Get one credit card only if your work or business requires it.
(2) Never recklessly charge to your credit card purchases that you don’t have cash for.
(3) Pay the total bill on time.
(4) Don’t be greedy for points.

Those who are dependent on “5-6” are not exempted from this principle. People who are
dependent on “5-6” must free themselves from this loansharks.

Under this principle, the dilemma on when to borrow and not to borrow is also discussed. I
for one am not a fan of borrowing money. I learned that even if I don’t have a cent in my pocket, I
am way more rich than a person who has a lot of money but is way too deep in debt. The following
tenets are to be considered when deciding whether or not to borrow money.

 Do not borrow anything that depreciates. Better save first before buying.
 It’s OK to get loans to but a house or a unit. But be wary of banks or financing companies
fixing the interest rates for only one or two years as they are prone to increase it anytime. It
is wise to have substantial savings first, before you consider buying a house or unit.
 Don’t borrow to pay off your debt, unless it is an interest rate that is lower than your existing
one.
 Don’t borrow at high interest rates. A difference of anything higher by 6% a year compared
to others is too high.

Another principle is to Demolish Debt; Pay it off ASAP.

I think this part of the journey to a Debt-Free Lifestyle is one of the most important steps to
take. Ultimately you have to decide to pay off all your debts and plan a strategy to actually do it. If
you are a person who incurred large amount of debt, you might feel suffocating and hopeless just by
thinking of how to pay for all of it. However, the author presented a story where we can see how
starting small step is a big leap to paying off your debt is already. In the case of Lena, she paid all the
people she owed to first. Then she chose the credit card company where she has the smallest amount
of debt until such time she was able to pay for all of it.

Of course paying of debt requires certain sacrifices like giving up your luxurious lifestyle and
settling to a more disciplined one. You must learn to tighten your belt and work diligently until you
are able to pay everyone. You must also learn to explain to your creditors your circumstances and ask
for leniency. In turn, you do your best to earn money to pay them all. Of course the journey to
demolishing your debt must be peppered with prayer, seeking the guidance and provision of our
Almighty God.
The fifth principle is Education, the Greatest Wealth Equalizer. Education really sets a person
free; be it from debt, hardships in life, ignorance, inequality etc. Filipinos are firm believers that
education is still the best gift they can give to their children. This is evident in the quality of overseas
Filipino workers we are sending overseas each year. Because most Filipino’s are educated there is no
problem for them in finding jobs. The problem lies in the way Filipinos spend their money. The
concept of saving for our future is still very new that’s why many opt to but things that they don’t
really need. They need to focus more on educating themselves financially. Learn ways on how they
can properly invest their hard-earned money to have a passive source of income.

Next is Family Planning. In the recent years, more and more teenagers get pregnant without
considering the consequences of such pregnancy. Sex has become so casual that even teenagers
engage in it resulting to unplanned pregnancies. Add this to situations where the husband and wife
are barely able to support themselves yet they continue to have more and more children. Many
couples just like the thought of having a kid of their own without stopping to think if they can give
the kid a comfortable life. The author tells you that if you desire to build a family, then you must plan
for it. Good family planning does not rest on having one or two kids. Good family planning is
determined by whether or not your child will be able to live a comfortable life, with a roof over his
head, food on the table and clothes on his body. Of course, he must be able to attend school and he
must be adequately take cared for.
 Then there is the principle of being Grateful to God, Generous to Others. The bible teaches us
to be thankful in ALL circumstances. God did not qualify whether you should only be grateful in good
circumstances. By being grateful, you show the extent of our faith in God’s sovereignty and provision.
Gratefulness also leads to contentment. When you are content with what God is blessing is you will
not feel the need to clutter your life with things that you do not really need. Besides, you can rest in
God’s promise that He has a wonderful plan for you. A plan to prosper you and not to harm you. So,
be obedient to God’s command. Give thanks!

The author also reminded us that we must always choose Honest, Hard Work (Not easy
Money). King Solomon, the wisest man in the bible said, hard work is the key to steadily accumulating
wealth over time. Wealth coming from get-rich-quick schemes quickly disappear. Many people are
scammed by these schemes because most of them don’t want to work hard but would want to earn a
lot of money. Some even resort to collecting bribes. The bible advises us to do honest, hard work
instead. This is the only kind of work that pays out in the end. The stories shared by the author clearly
depict the truth in this principle. Both worked very hard early on in life. They were taught to live
frugally and just to live within their means. Also, the importance of saving was instilled in their mind
early on. In the end, they grew up to be successful and rich individuals.

The second to the last principle is Invest for the Future, Invest also for eternity. This chapter
speaks about passive income. People should not be contented with just one source of income. Each
one must strive to find a way to make their money work for them. “How is that?” you say. First, set
aside a part of your income and invest the said amount. Look for an investment scheme with
compounding interest. Here, although the interest is small, such interest is doubled over time giving
you more earnings compared to just letting your money sit in the bank. More important than this, the
bible teaches us to save for eternity. How? First, by making sure that you are a Christian. From there,
we can invest our treasures to winning of souls and making disciples by giving our tithes and offerings
to the Lord for the furtherance of His kingdom. Having not enough money is not an excuse because
we can also invest our lives by serving full-time in the ministry of God.

The last principle is Principle 10: 10-20-70. This part teaches us to give 10% to the Lord, save
20% and spend 70% of our income each month. Let’s talk about tithing. Tithing is a God-given
principle that unlocks the blessings of God. In fact, this is the only time that God allowed us to test
Him. He promised that he will pour out so much blessings we will not have any room for it if only we
are faithful in tithing. It also stretches our faith in God that He will do as he promised. It is also our
way of worshipping God and thanking Him for His faithfulness in blessing us.

In totality, the ten principles if followed correctly will really direct us toward a debt-free
lifestyle.