What Does the Bible Teach About Handling Our Finances?
LISTEN TO SAFE 1 TALK WITH THE MONEYWISE GUYS ON THIS TOPIC!
Careful stewardship of money is a timeless topic! From budgeting to saving to financial planning, proper money management is something humankind has dealt and struggled with since the beginning of time.
Even the Bible addresses and provides advice on how finances and money are to be adequately handled. Regardless of your religious beliefs, the Bible truly provides sound financial advice on how to work with your money in a diligent, well-planned fashion.
With this in mind, let’s take a look at a few Biblical verses and how money as well as the managing of finances is addressed.
Budgeting
“The plans of the diligent lead to profit as surely as haste leads to poverty.” (Proverbs 21:5)
“Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it? (Luke 14:28)
- Both of these quotes fully stress the importance of proper planning by having a budget.
- Even when doing something as essential as purchasing an automobile, it is important to not look first at what you want, but rather what you can afford.
- Obviously, many people first try to find the “shiny new car” only to realize it is out of their price range.
- So, just like building a tower it is important you review your budget prior to shopping for that vehicle or whatever purchase you are wanting to make.
- Also, always remember it is never too late to create a budget and start living within certain restrictions.
- So, even if you are in the midst of financial difficulty not all is lost.
- Remember, “diligence leads to profit as surely as haste leads to poverty” – so it is never too late.
- In addition to the availability of budgeting apps, there are also debt professionals and debt-relief attorneys whose mission is to assist in such efforts.
- Through this process, debt settlements can be made without doing damage to your credit score.
Pay Your Bills
“Look! The wages you failed to pay the workers who mowed your fields are crying out against you. The cries of the harvesters have reached the ears of the Lord Almighty. You have lived on earth in luxury and self-indulgence. You have fattened yourselves in the day of slaughter. You have condemned and murdered the innocent one, who was not opposing you.” (James 5:4-6)
- In other words, pay your debts.
- You may not be an employer who pays salaries and wages to employees, but it is important you pay your mortgage, car payment, monthly utilities, debts, etc.
- And the better you pay your obligations, the more you will be rewarded – not just from a spiritual standpoint, but in the way of a better credit score which equates to better loan rates you will have to pay when looking for credit.
- Remember, two things lenders look at when you apply for credit are your credit credit score and payment history.
- When both these items are favorable, it is only to your advantage.
- So, do what is right! Pay your bills so you’re not fattened for the day of slaughter.
Preparing for a Rainy Day – Having an Emergency Fund
“Four things on earth are small, yet they are extremely wise: Ants are creatures of little strength, yet they store up their food in the summer;” (Proverbs 30:24-25)
- Simply stated, ants store up their food in summer because it will not be available in winter.
- In other words, they have an emergency fund.
- Like ants, we need to create an emergency fund during the “summer,” or prosperous times of our lives, in order to have money for the “winter,” or trying times.
- How much should you have in your emergency fund?
- Financial experts generally recommend having an emergency fund that is the financial equivalent of six to 12 months living expenses.
- Keep in mind, this is not the financial equivalent of your paycheck for six to 12 months, but rather just living expenses – food, shelter, utilities, etc. (i.e., the basics of life).
- So, just like ants we’re trying to take care of the essentials.
- Keep in mind, creating an emergency fund doesn’t just happen!
- When doing so, however, here are a few things to keep in mind:
- Don’t Try to Save Everything at Once. Instead, start small with a specific goal that is measurable and achievable. For some individuals this may be $100, while for others it could be $500. Whatever the amount, be sure it is something you can achieve within 60 days.
- Once this first goal – whatever it may be – is achieved, quickly add to it! So, $100 may become a new goal of $250 or $500 may become $750, and so on.
- Pay Yourself First! Be sure to set aside savings at the time you have it, such as when you receive your paycheck. Don’t wait to do this at the end of the paycheck period, as this never works.
Planning for Your Future
“Dishonest money dwindles away, but whoever gathers money little by little makes it grow.” (Proverbs 13:11)
“A wise man thinks ahead; a fool doesn’t, and even brags about it!” (Proverbs 13:16)
- In addition to proper budgeting being required for good financial health, it is also important you prepare for some of the more expensive things in life such as your child’s or children’s first car(s), college, retirement, weddings, etc.
- Obviously, some of these items such as cars, college, and weddings can be quite expensive, so it’s important you not let them sneak up on you, put you in debt, and affect other important life experiences such as retirement.
- Instead, and as most of us know, setting a little bit of money aside every paycheck for these life endeavors can be instrumental in not only having us prepared but financially successful as well.
- To effectively prepare, the experience and expertise of a financial planner who can assist you during the process cannot be underestimated.
- In the case of your retirement, a financial planner can also assess your personal risk tolerance.
- It is also important to Know Your Money Psychology!
- Remember, people who are “ultra conservative” and afraid of losing money also miss opportunities for growth.
- So, don’t be a fool and brag about how much you’re saving and spending when, in reality, you’re not setting money aside for life happenings that cannot be ignored.
Religious beliefs aside, the Bible truly offers sound financial fundamentals for people to follow. So, be sure to give the aforementioned verses a read. Who knows? You may get more out of it than simple financial advice!
Source: https://pushpay.com/blog/25-bible-verses-about-managing-your-finances/