Biblically backed principles for dealing with your money…
One of the greatest fears of every human is the fear of poverty and going broke. Ironically, the same thing that most fear is their reality. Statistics show that a huge chunk of the world population live on less than 3dollars a day.
I have learnt over time that in most of these cases, the government has nothing to do with it, neither is it that God has withheld His blessings from us. There is enough resources in the world to satisfy everyone, but most people live in poverty because of their attitude towards money and finances. Financial illiteracy is also a problem for many. The bible has quite a lot to say about making money, managing money and multiplying/sustaining wealth.
- Work: There is nowhere under the sun where one gets rich by just sitting around and wishing. Work is a necessity for anyone that will thrive. It matters little whether what you do for work is fancy and pays much or it’s a small scale activity that earns you little. What is important is that you do something to earn an income and that you put an attitude of excellence into what you do.
He who tills his land shall be satisfied with bread, but he who follows worthless pursuits is lacking in sense and is without understanding. Proverbs 12:11
….if anyone will not work, neither let him eat. 2 thess 3:10
Even God worked, and He put the man He had created to work before anything. The fact that you are doing something with your hands is what first qualifies you for financial gains.
- BUDGETING: This simply means that you generate a plan and structure for disbursing your money. Just as you plan for everything else, you should plan your money. It is important that you figure out what things are most important to you and what things are mere luxuries and prioritize your spending. As much as possible you should have a budget even before your income arrives. That way, you are not tempted to put money into unexpected and unnecessary things. While you may not always have what you want, budgeting helps you ensure that you can always afford the things you need without having to borrow. When you develop your budget, prayerfully bring it before God and He will guide you on how to live a financially wise life.
- SAVING: Saving is putting aside resources for investments or for some future use. Saving ensures provision for future needs, emergencies and unplanned neccesities and it helps to cushion the effects of financial disasters. Financial gurus and even the bible emphasize the importance of not eating all we earn but always keeping some away for the rainy day.
“The wise man saves for the future, but the foolish man spends whatever he gets.” Proverbs 21:20
For saving to be effective, it must be a steady and consistent activity, not a one-off. You should also be careful to ensure that your saving are not kept in such a way that you may easily access and take out of it unnecessarily; especially if you are not a particularly disciplined person. Its been said that people with credit cards are likely to spend more than without. You might want to open a bank account exclusively for your savings and avoid linking a credit card to that account. You can also start with a piggy bank. Don’t be tempted to believe that you have too little to save, little droplets of water can make a pool. However little you are able to set aside from time to time, what is most important is that you do so consistently.
- INVEST: Asides ensuring that we are able to meet our needs per time, it is important to find ways to ensure we have a safe income plan that is not our regular day job. This is where investments come in. investing achieves both the purpose of saving your money and turning it over to bring in a profit for you while you pursue other things. Remember the parable of the talents? The master was not angry at the servant simply because he did not trade with his money (perhaps, not everyone is given to trading), but the master thought he could have at least invested the money.
But his master answered him, ‘You wicked and slothful servant! You knew that I reap where I have not sown and gather where I scattered no seed? Then you ought to have invested my money with the bankers, and at my coming I should have received what was my own with interest. Matt 25:26-27.
You also want to be careful not to put all your eggs in one basket. Investing your money will help you participate in various different ventures, considering you never know what may happen to any industry.
Cast Your bread upon the waters, for you will find it after many days. Give a portion to seven, yes, even (divide it) to eight, for you know not what evil may come upon the earth. Eccl 11:1-2.
- AVOID DEBT: Taking personal loans to achieve reasonable necessities that you can gradually refund is not necessarily bad, but borrowing to satisfy lusts and casual wants is a problem. Most people’s income is not enough to satisfy their needs if not properly planned, adding debt to the already stretched budget results in a financial bind that can cause stress, anxiety or damage to your health. Be careful to avoid the debt trap by keeping out of unnecessary debt. Don’t take on financial obligations that you cannot reasonably fulfil by chasing luxuries you cannot afford. You may get the impression that you will not survive if you do not borrow to supplement your income, this thought is untrue as many people survive on very little income as long as they are disciplined enough to cut their coat according to their size. What brings about debt most times is the desire to look and live large. There is nothing wrong with comfort but there is everything wrong with chasing desires you cannot yet afford. Debt takes away your freedom and puts you in a bind.
“The rich ruleth over the poor, and the borrower is servant to the lender.” Prov 22:7
Also, be careful not to stand guarantee for someone who is borrowing unnecessarily. If they refuse to pay, the debt becomes yours. Be wise.
- Give: This is not a principle that appeals to the secular mind since it make no sense to take out of what you’re trying to increase for the sake of another. Giving is a biblical foundation for receiving and is a sure principle for achieving financial strength;
givers have an understanding of the principle of stewardship where all things belong to God and so we must return the same to Him and to his purposes. This is a way of honouring God, and He in turn, blesses us.
A generous person will prosper; whoever refreshes others will be refreshed. Prov 11:25
Give, and it will be given to you. A good measure, pressed down, shaken together and running over, will be poured into your lap. For with the measure you use, it will be measured to you. Luke 6:38
These principles will guide into a better financial existence but be aware that it can only be achieved with diligent persistence, self-control and the practice of self-denial. Also, be sure to pray through all your financial activity and to honour God with the best part of your financial lot.