… "The earth is the Lord’s and the fullness
thereof," wrote King David in Psalm 24:1-2, "the world and those who
dwell therein, for he has founded it upon the seas and established it upon the
rivers."
Every
spending decision is a spiritual decision.
Ask yourself if your purchasing aligns with your values and what God would have
you do with your money. After all, we are simply managers of His resources. To
be intentional with our money, often means budgeting for future goals and
expenses, as well as present needs.
Only let your manner of life be worthy of the gospel of
Christ…(Philippians 1:27).
Understanding that we are merely stewards of these
resources and that God owns it all, can help us reorder our spending decisions,
and challenge the amount of power that money has over us. Since we are not God
— not sovereign, omnipotent, or omniscient — we don't know the future. We can
only trust God to guide and sustain us - not the amount of money in our bank
account/cash at home.
Christian life is gospel based, prayer saturated and faith oriented…… If
any of you lacks wisdom, you should ask God, who gives generously to all without
finding fault, and it will be given to you. – James 1:5 (NIV)
Diligence and Planning
Proverbs 21:5 states, “The plans of the diligent
lead to profit as surely as haste leads to poverty.” This verse underscores the
importance of diligence and careful planning in financial matters. Biblical wisdom
encourages believers to approach their finances with a thoughtful and strategic
mindset, emphasizing the value of setting goals and devising plans to achieve
them. The principle of diligence teaches that success in financial matters is
often the result of careful planning and disciplined execution.
Faithful Provision and Trust
The Bible assures believers of God’s faithful
provision. Philippians 4:19 states, “And my God will meet all your needs
according to the riches of his glory in Christ Jesus.” This principle
encourages individuals to plan and budget with a sense of trust in God’s
provision. While responsible planning is essential, it is equally important to
recognize that ultimate security comes from trusting in God’s faithfulness.
Planning and budgeting, when rooted in faith, reflect a reliance on God’s
guidance and provision.
Stewardship and Accountability
The biblical concept of stewardship plays a
pivotal role in planning and budgeting. In the Parable of the Talents (Matthew
25:14-30), individuals are entrusted with different amounts of resources, and
they are held accountable for how they manage what they have been given. This
principle emphasizes that every individual is a steward of the resources
provided by God and should, therefore, plan and budget in a way that reflects
faithful stewardship. It calls for a sense of responsibility and accountability
in managing financial resources for God’s glory.
Spend Less Than
You Earn
The wise store up choice food and
olive oil, but fools gulp theirs down. (Proverbs 21:20)
Advisors
often encourage clients to have a budget (or a “spending plan,” as we like to
call it) for several reasons, including:
- If you don’t know how you are currently spending your
money, it can be hard to plan for the future. In order to identify where you want to make a change
you need to first know where it’s all going. Not to mention, the largest
expense in retirement is living expenses; planning for retirement without
knowing how much you need to live can be nearly impossible.
- Sometimes people who don't live on a budget can find
themselves in debt without realizing it.
Spending less means that you are able to avoid debt and take care of your other
financial responsibilities first.
- Online tools, apps, or even a yellow pad can make it
easier to track your spending habits.
This way you're not caught by surprise at the end of the month when your
bills arrive.
- Using cash rather than credit cards, checks, or online
payments can actually help you spend less. People often spend more money when using plastic;
someone could buy $50 worth of groceries but still feel like they haven't
spent anything because there's no receipt, money exchange, or money taken
out of an account. Having a budget may help you identify certain
areas where using cash is a good idea.
It also helps to practice living within one's means and not
carrying high levels of debt from one month to the next. It’s a good idea to
develop a spending plan based on income and expenses (and creating categories
for where money should be allocated). The number of categories or
complexity is up to you. It should be a spending plan that is meaningful for
you and how you spend your money. Developing a budget may seem daunting
initially but sticking with it over time will help develop good habits that
will benefit you in the long run.
Spending decisions are spiritual decisions. When you build your spending plan, spend time in
prayer. Ask Him to give you wisdom about how to handle your finances throughout
the month.
Before making any major purchases, prayerfully consider
whether those purchases fit into God's plan for you and your family.
As you build your spending plan, don’t forget about savings.
Commit to putting a percentage of all new income into savings as soon as
possible. Having savings set aside will provide peace of mind when emergencies
arise or you want/need something unexpected. You'll never regret your choice if
you save up for a purchase instead of buying something on credit just to have
it right now.
Getting more bang for your buck is simply smart economics —
whether it applies to food, clothes, cars, homes, or vacations. Spending wisely
can create lasting abundance while taking care of both current and future
expenses.
Avoid the Burden
of Debt
The rich rule over the poor, and the borrower is slave
to the lender. (Proverbs 22:7)
(Proverbs
22:7)
"The wicked borrow and do not repay, but the
righteous give generously." (Psalm 37:21)
Taking
on debt means making an assumption about the future - the assumption that you
will be able to repay.
Debt
can be a very dangerous thing if you find yourself unable to pay. If you're
tempted not to make that month’s payment - don't give in! You won't be
doing your future self any favors. Revisit your budget and figure out where
else you can cut back. If you are in a repayment phase, realize that
it may be difficult at first, but make sure you keep up with the process until
those debts are paid off. Then work on keeping them from coming back again.
The
best way to avoid debt is to adopt a pay-yourself-first mentality when
budgeting your finances. Save for your goals in advance; if you know you’re
going to need a car in 2 years start saving now. If you budget for your needs
such as gas and groceries before paying anything else then you will not likely
be strapped for cash.
Build Financial
Reserves and Liquidity
Go to the ant, you sluggard; consider its ways and be
wise! It has no commander, no overseer or ruler, yet it stores its provisions
in summer and gathers its food at harvest. (Proverbs 6:6-8)
(Proverbs
6:6-8)
This principle supports saving for the future with a
focus on liquidity and preventing financial hardships by building a rainy day
fund. The Bible says in Proverbs 21:20, "There is treasure to be
desired and oil in the dwelling of the wise; but a foolish man squanders his
wealth."
A good rule of thumb is to keep 3-6 months of living
expenses in a savings or money market account. These are funds that you may
quickly access if the washing machine breaks or you unexpectedly lose your job.
For more long-term future expenses, consider investing 10-15% of your household
income into retirement accounts. If you have children, you might consider
creating and funding educational savings accounts.
We should save and invest so that if, and when,
unexpected things happen, we are prepared — not so that we can be greedy or
presume upon the future. The Bible says in I Timothy 6:17-19, "Command
those who are rich in this present world not to be haughty, nor to trust in
uncertain riches but in the living God, who gives us richly all things to
enjoy. They are to do good, to be rich in good works, generous, and ready to
share, thus storing up treasure for themselves as a good foundation for the
future, so that they may take hold of that which is truly life." In
Ecclesiastes 11:2 we are reminded of the importance of diversifying. Consider
investing in way that reflects humility and across multiple asset types,
companies, and countries.
Give Generously
But since you excel in everything—in faith, in speech,
in knowledge, in complete earnestness and in the love we have kindled in
you—see that you also excel in this grace of giving. (2 Corinthians 8:7)
Give generously. There is a difference between
tithing, which often means giving a percentage of our income to the church and
being generous with how we use our money.
Are we holding too tightly to our money, when there
are kingdom purposes or needs directly in front of us? Are we in a position to
be generous towards those who are close to us? How do our friends and family see
us using our money?
Giving to mission-driven charities
is a powerful way to make a difference in the world. Choose an organization
that helps solve a problem you feel strongly about. Ask God to open your eyes
and heart to a current need or charity. Research an organization's impact and
stewardship reports. Then consider giving to the causes you believe in.
We
may never stop trying to grow financially, but we should also realize that many
people live on far less than we do. The U.S. Census Bureau
estimates that 37 million Americans live in
poverty, and around the world, one out of every ten people lives on less than $1.90 per day. As people of
faith, we are called to use our resources to make a difference for people who
are struggling or may have less then us.
Don't forget you can be generous with yourself as
well. You are, after all, a person with a mind, spirit, and physical body that
all need attention. Work hard and rest well so that you are healthy both
physically and spiritually. What would happen if you didn't take time off? How
would it affect your relationships? Would you lose sight of the fact that
there's more to life than what you do every day?
Think and Plan
Long-Term
Be very careful, then, how you live—not as unwise but
as wise, making the most of every opportunity, because the days are evil.
Therefore do not be foolish, but understand what the Lord’s will is. (Ephesians
5:15-17)
(Proverbs
16:9)
Look at the life you want now and well into the future,
recognize that it won't always be easy or straightforward (God may even choose
to modify your desires at some point). Then determine and act on a plan that
can help get you there.
The Bible provides ample guidance on how Christians
should approach their finances:
- Trust in the
Lord with all your heart.
- Lean not on
your own understanding.
- In all your
ways acknowledge Him.
- He will
direct your paths. (Proverbs 3:5-6)
People
with a lifetime commitment to Christ have the responsibility to be intentional
with their money, but they also have the blessing of confidence in God's plan.
While we need to give God the freedom to modify our own plans, it’s still a
good idea to focus on short-term and long-term spending, savings, and
investing. Keeping biblical stewardship in mind, it makes sense to focus on
investments that will support you into retirement, but also beyond, enabling
you to leave more behind for your spouse, descendants, and/or the
kingdom of God.
Proverbs
13:22 says, "A good person leaves an inheritance for their children’s
children, but a sinner’s wealth is stored up for the righteous." In
Biblical times, inheritance didn't necessarily mean money. It often meant land,
and it conveyed a sense of honor, provision, and family status.
As
Christians, we want to leave behind more than a financial legacy. For most of
us, the impact of what we do with our time and talents will far outweigh the
impact of the estate our heirs will one day inherit.
In
fact, good stewardship of money is just one small part of passing on a legacy
to our children… and their children… and their children.
In
Genesis 15, Abraham worried that his wealth would go to a servant instead of to
his own child. Jacob famously snookered his brother Esau out of their
inheritance. And Joseph's sons received Jacob's blessing at the end of his
life. "In them," Jacob said, "let my name be carried on."
These
men were not just concerned with safeguarding their property so their families
could prosper. They also wanted to keep the knowledge of God alive for their
descendants.
Other
women and men in the Bible also left a legacy of faith. Moses gave his
leadership position to Joshua. Elijah let his mantle fall on Elisha. Sarah left
a legacy of faith and commitment for her people. And Jesus left His ministry to
His followers.
Legacy
of faith. You are your child's most
important influencer. They are watching you and imitating you. Even if you
don't see it now, you probably will. Make sure your children and grandchildren
observe the vibrant Christian faith that influences your everyday life.
Legacy
of good character. Lead your life with honesty,
passion, and gratitude. Treat people well. Encourage others. Thrive.
Legacy of hard work. No one achieves something spectacular without working hard
at it. A combination of patience and discipline, hard work is the only way to
the top.
Legacy of family
memories. Your children and grandchildren
will remember the quality time you spent with them. They'll talk about the
games you played, the books you read together, and the stories you shared with
them. These memories will help carry them through the tough times in life.
Finally,
you can leave a financial legacy. Judicious use of assets and
responsibility to manage it needs to be instilled in children from young age.
Children learn from what you did in your lifetime. So try to leave sufficient
to keep them going and make it known to them
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