God’s Covenant for a People
Are you in some kind of trials, hardships, and difficulties right now? If you allow God to work in you through these trials and difficulties, you will find yourself becoming God’s covenant for a people.
Reading 1, Isaiah 49:8-15 8 Thus says Yahweh: At the time of my favour I have answered you, on the day of salvation I have helped you. I have formed you and have appointed you to be the covenant for a people, to restore the land, to return ravaged properties, 9 to say to prisoners, 'Come out,' to those who are in darkness, 'Show yourselves.' Along the roadway they will graze, and any bare height will be their pasture. 10 They will never hunger or thirst, scorching wind and sun will never plague them; for he who pities them will lead them, will guide them to springs of water. 11 I shall turn all my mountains into a road and my highways will be raised aloft. 12 Look! Here they come from far away, look, these from the north and the west, those from the land of Sinim. 13 Shout for joy, you heavens; earth, exult! Mountains, break into joyful cries! For Yahweh has consoled his people, is taking pity on his afflicted ones. 14 Zion was saying, 'Yahweh has abandoned me, the Lord has forgotten me.' 15 Can a woman forget her baby at the breast, feel no pity for the child she has borne? Even if these were to forget, I shall not forget you.
A covenant for a People
Thank You that You have not only answered my prayer and helped me, You have also made me the covenant for a people – Your people, my tribe.
You have used me to share whatever knowledge you have shown me, first to my family and second to whoever You want to read this blog.
An idea or ideas that You can use to help them out from whatever trials and difficulties they are in right now.
8 Thus says Yahweh: At the time of my favour I have answered you, on the day of salvation I have helped you. I have formed you and have appointed you to be the covenant for a people, to restore the land, to return ravaged properties, 9 to say to prisoners, 'Come out,' to those who are in darkness, 'Show yourselves.' Along the roadway they will graze, and any bare height will be their pasture. 10 They will never hunger or thirst, scorching wind and sun will never plague them; for he who pities them will lead them, will guide them to springs of water. 11 I shall turn all my mountains into a road and my highways will be raised aloft.
I have cried out to You in my heart how I could get on top of my finances.
That I will have more than enough so that I can pay my bills and debts on time, and eventually be debt-free but at the same time also have savings as much as the paid off debt
Because I felt like I was drowning in bills and debts, always worried where I will get the money to pay all these or will my money arrive on time to pay all these so I will not incur costly penalties?
Amazingly, You showed me the system of Velocity Banking.
Velocity Banking the world’s way
Normally, people use the velocity Banking method to pay off all their debts fast through a line of credit
They use this line of credit as their new checking account where they put in all the income they receive for the month, borrow from their Line of Credit for the amount of their monthly expenses plus the amount of the smallest loan, pay off the smallest loan in lump sum with the borrowed money and as well as their expenses for the month.
Then with their existing cash flow (what’s left of your money after you get your expenses from your income), plus the freed up new cash (the minimum monthly payment) from the paid-up debt, you pay the next debt on the line, repeating the same process until what’s left is your remaining debt from your line of credit which gets paid monthly by you putting all your monthly income in there.
It’s kind of complicated actually if you don’t have the patience of adding and subtracting and tracking all your money going to 3 different places: from your income account to your line of credit to your smallest debt and monthly bills.
Here is Denzel Napoleon Rodriguez explaining how to do Velocity Banking with a savings account to help you better understand.
But You, Lord, showed me a much better, simpler way.
Velocity Banking God’s Way
I only have 20k cash on hand on my 2 checking accounts.
I intend to use this amount for Velocity banking instead of just having it sitting uselessly in the checking accounts losing value over time because of inflation.
I plan to consolidate them in a time deposit account in the Credit Cooperative I’m a member of, OCCI.
But my monthly bills and debts total 40k so this money will not be enough. Because my Coop will only allow me to loan according to the amount I have on the time deposit account.
So I cried to You about it, to help me find a way to be able to use this capital/principal that I have of 20k to pay off all my 40k bills and debts for each month through velocity Banking.
And then as I was listening to a velocity Banking video on YouTube, this idea came to me.
Using a Time Deposit with a Credit Cooperative as revolving line of Credit
Why not use this 20k time deposit, not to pay off only a few smaller debts in lump sum to start the debt snowball, like the world’s way, but to use it like a revolving line of credit to pay off ALL my bills and debts for that month?
It’s so simple I could cry.
I detail the process here on Giving your way out of debt and into wealth.
Basically, I borrow 20k on day 1 of each month, pay off all my bills and debts for week1 and 2.
Then when my week 1 income comes in, I put in 10k for the time deposit loan. Week 2 income comes and I pay off the remaining 10k paying off all my 20k loan which allows me to reloan again.
Day 15, I reloan again, pay off all my debts and bills for weeks 3 & 4, and then pay this loan off with my week 3&4 income.
Then rinse and repeat.
How simple is that?
No computing for remaining cashflow or whatever, no choosing which debt to pay off first.
But take note, this only works for a financial institution that allows you to reloan the moment you pay off a loan. Like my OCCI Coop.
Using Velocity Banking with Certificate of Deposit/Time Deposit with a Bank
You can do this with a bank using a Cash deposit or time deposit account. They give you a credit card and the amount on your CD becomes your credit limit.
But don’t just go around swiping left and right with your credit card. No!
You go to your bank and ask to make a “convert to cash” or “call for cash” loan using your CD account as guarantee to secure your loan.
I don’t know about your bank, but mine allows me to borrow 80% of the amount I have on the certificate/time deposit at less than 1%, if I’m not wrong.
So much less than the 3% interest percent per month charged when you just swipe with your credit card if you fail to pay within a month.
Rule of law to use your credit card wisely: Use it like a debit card.
Only swipe with the same cash amount you planned on paying.
If you want to buy groceries for 500, swipe for 500 then immediately after, pay your 500 cash to your credit card.
So back to the convert to cash loan using your certificate of deposit or CD. For instance, I have 25k, they let me borrow 20k. And then I set with them the duration to pay: 3 months, 10 months, etc.
Bummer is, I can’t reloan again until the time duration of the loan ends even if I have the capacity to pay it off all at once. I have to follow the payment schedule according to the system.
But I’m going to use this in conjunction with my Coop time deposit. It’s because I have an online business I usually pay on my debit card monthly, so why not use a credit card and earn Cashback rewards, right?
Plus, I have been rejected for several credit card applications. This could be an easy way to get it.
Oh, and heads up for Filipinos who have GCash. The more you use your GCash to pay your bills, which you do monthly, right, you will unlock their credit line of up to 30k at 3% interest per month.
Why did I not know this before?
Using a Pawnshop
If you have gold jewelries just sitting pretty in your drawer, you can pawn it, not so you can consume, but so you can raise capital for velocity banking.
Let’s say, like my jewelries that I pawned, I was able to get 40k for it at 3% per month interest rate.
But this is a simple interest rate-only loan. This means you can borrow, and the greater amount you pay, the faster you can pay up this loan, the less interest.
Perfect candidate to apply velocity Banking here.
Becoming a Covenant for a People: Sharing the Velocity Concept to my family
It’s so simple I was able to explain the concept to my brother and sister-in-law, her sister, as well as to my sister and brother-in-law when we were having a get-together yesterday.
Although the concept was new to them because we only were borrowing and paying debts from our own pockets to pay our monthly bills and debts, they understood and they all want to do it as soon as they’re able to raise capital!
You only have to use your principal in the time deposit as guarantee to secure the loan for the amount you need and usually pay for every month and use the loan to pay them off instead of paying straight from your own pocket. To pay off this loan, you just use your next monthly income to pay this all off, allowing you to repeat the process.
What’s amazing here is that you get to pay all your bills and debts and at the end of the month, you still have the principal, your capital, like in my case 20k, in your time deposit account sitting pretty and growing interest – 4% per annum in my case.
When the time comes when you pay off all your debts – and they will because you’re paying every time – you find yourself with money saved in your account that is also your line of credit anytime you need to borrow again.
You don’t have to worry and stress about not being able to save while you’re working to pay off all your debts.
Eventually, you’re debt-free and still have capital and credit line you can use for whatever – even to start a small business.
And then you can increase your savings on this account every year, if you want, effectively increasing your credit limit.
So cool, right, as opposed to Dave Ramsey’s simple debt snowball where you work hard to pay off all your debts from your own pocket which leaves you with nothing until you start saving up but only after you’ve paid all your bills.
Velocity Banking allows you to do both at the same time!
Now Your turn
Do you want to know how to manage God’s money that He entrusted to you so you can be God’s covenant to a people?
Seek God’s wisdom. He can show you concepts that you’ve never heard before but may be able to help you immensely.
Like Velocity Banking.
So to summarize, God’s way of Velocity banking is simply this:
It’s using your existing capital, minimum of 20k to create these accounts (well, here in the Philippines. Find out how much to open a time deposit where you are), to use it to secure for you a line of credit (LOC) which you can use to borrow from to pay off your bills and debts monthly and pay off the loan with your incoming monthly income.
This is not the borrower becoming a slave to the lender.
This is using your money and a debt tool responsibly to have money and interest work for you and not against you.
It’s moving money around as a tool wisely and not just have it sitting useless in a savings account doing nothing. That’s why it’s called velocity banking.
But this means you can only do this if you are responsible enough to be able to raise capital, 20k, at least.
If you want this, find a way to raise money so you can have capital to start this process off.
If you cry to God for help, He will come and save you.
And with God and your will, there’s always a way.
- Know all your financial numbers: income, expenses, cashflow (income minus expense), and debts.
- Pray to God for wisdom so you can manage His money well.
- Apply concepts you’ve learned with the wisdom of God so you are not only able to overcome but become God’s covenant for a people.
Give me Wisdom to manage Your money that You entrusted to me the way You want to so that I can be Your covenant to a people you want me to share this wisdom with. In Jesus’ Name.
This is it for now. Till next time.
To our health, wealth, and victory – GODSPEED!