Financial Management Methods, He is the most financially responsible person I know. He tithes, he rents, he invests wisely and he isn’t afraid of isolation. Are you ready to meet your financial future with a companion like that? God is the best financial manager anyone could hope to have. His investment strategies and methods are foolproof. If you’re interested in learning!
The Bible clearly discusses money in some detail. In fact, there are 2,500 verses in the Bible that deal with handling money and property. Woah.
These 2,500 verses provide us with a guide and educate us on how to manage money according to God. The thing about God’s methods for handling money is that they are effective. Each time.
You won’t ever have to worry about money again if you choose to abide by what the Bible says about handling finances. Seriously. Beyond that, you’ll accumulate fortune to enable you to pursue your goals and practice extravagant generosity.
What Does the Bible Have to Say About Managing Money?
Here is a breakdown of God’s financial game plan in case you’re ready to quit listening to money advice from TikTok and your broke brother-in-law in favor of what the Bible has to say about handling money.
Establish a budget and adhere to it.
Have you ever worried that you wouldn’t have enough money to make it to your next payday as the month’s end drew near? Every day, a lot of people experience the feeling that they have more money than a month.
Budgeting, thankfully, is a solution to this issue. Seriously. In Luke 14:28–30, Jesus taught his disciples the value of creating a budget (NKJV). Who among you, he questioned, “does not sit down first and calculate the cost, to see whether he has enough to complete it—lest, after he has laid the foundation, and is unable to complete, all who see it begin to mock him, saying, “This guy began to build and was not able to finish”?”
Going through the month without having enough money to pay for necessities is comparable to starting to build a tower but being unable to finish due of a lack of funds. But that won’t happen anymore if you sit down first and add up the costs by creating a budget before each month starts.
We understand that creating a budget isn’t always enjoyable (unless you’re a super nerd). However, as we like to say at Ramsey, kids do what comes naturally to them while adults make plans and follow them. If you want to manage your financial money wisely and in accordance with God’s ways, you must invest the time and effort necessary to create a plan and give every dollar you earn a job before the month even starts.
Spend less spend less than you earn and save.
You must consider expenses beyond those for today and the following month when creating your budget. You should also consider the future. Living on less than you earn will allow you to have extra cash for savings.
Proverbs 21:20 (NIV84), which reads, “In the house of the wise are stocks of choice food and oil, but a foolish man devours all that he has,” discusses the value of storing.
We are aware that saving money is difficult. But if you don’t manage your spending well enough to have money left over at the end of the month, you’ll end up living paycheck to paycheck like the 59% of Americans who do.
You must therefore be disciplined enough to stick to your spending plan and avoid acting foolishly by devouring everything you have. Although it can be extremely difficult at first, the Bible is very clear that this type of discipline is completely worthwhile in the long run. No punishment seems pleasant at the moment, but unpleasant, according to Hebrews 12:11 (NIV). But for those who have been schooled by suffering, it later yields a harvest of righteousness and serenity.
Don’t spend everything you have like the stupid man in Proverbs 21:20. Spend less than you earn and put money down for the future.
What should we use our savings towards, then? many different things! Savings can be used to pay cash for a car, pay for your children’s college debt-free, and even travel. Make sure you have money set up for emergencies before you do any of that, though. We advise building an emergency fund with 3 to 6 months’ worth of costs.
Invest to Increase Wealth
Saving money also enables you to make investments and amass wealth over time. God wants you to be affluent, which brings me to my next point. Really.
No, that doesn’t suggest that deciding to follow Christ and attending church will automatically make you wealthy. Around here, we don’t subscribe to the prosperity gospel.
However, if you manage your finances according to God’s principles, you will accumulate riches over time, and God is okay with that. He commands you to do it.
A good man bequeaths an estate to his children’s offspring, according to Proverbs 13:22 (NKJV). How do you give your children’s children an inheritance? generating riches.
Now, this does not imply that you are free to invest in a get-rich-quick scam. That’s foolish, and the Bible warns against it. According to Proverbs 28:20 (NKJV), “He who rushes to be affluent will not escape punishment.”
Instead, adhere to the biblical strategy for accumulating money. Set a budget and follow it. Live within your means. Save. Invest in strategies with a track record of success over time. By repeatedly engaging in such actions, you can amass riches. That is scriptural, not simply some theory we concocted. Math is also involved.
Get a copy of Dave Ramsey’s best-selling book The Legacy Journey if you want to learn more about what the Bible says about accumulating money and why those who believe that it is evil are utterly mistaken.
What Is the Bible’s Position on Debt?
Spoiler alert: the Bible makes numerous references to debt, and none of it is positive.
Although the Bible doesn’t say that having debt is sinful, it is evident that borrowing money is a poor idea. Always.
Proverbs 22:7 (NIV), which states that “The borrower is a slave to the lender” and addresses debt, is probably the verse about money management that is most widely recognized. The person you owe money financially to will have influence over your life until you pay them back. Financial debts are a burden.
In reality, Romans 13:8 (NKJV) by the Apostle Paul asserts that the only obligation we should have to anyone is love. “Love one another, for he who loves another has fulfilled the law,” he said. “Owe no one anything except to love one another.”
The Bible does not merely forbid you from accruing debt. It also teaches us that providing a cosigner for a friend or family member who is taking on debt is a bad idea. One without sense shakes hands in pledge and provides security for a neighbor, according to Proverbs 17:18 (NIV). If that’s too difficult to understand, the translation from the Contemporary English Version is unmistakable: “It’s unwise to guarantee someone else’s loan.”
The Bible is very clear about this: Debt is stupid.
But what if I have better financial acumen than most people and simply want to exploit other people’s money to increase my fortune more quickly?
If you’re truly devoted to managing your finances according to God’s guidelines, you’ll toss that notion into the garbage. The Bible doesn’t make an exception that says you can get into debt if you’re “smarter than most people,” and if you’re not careful, that mindset can rapidly turn hazardous.
How to Manage Your Money The truth about our money is that it isn’t actually ours. The Lord is the owner of the world and all that is on it, according to Psalm 24:1 (KJV). Included in that “fullness” is money.
The Bible’s Teachings on Stewardship
God owns the money that is in our pockets, purses, and bank accounts; it is not ours. The Bible uses the term “steward” to describe God’s decision to allow us to manage rather than possess His financial resources. That’s why it’s crucial that we manage money according to God’s principles. His resources, His laws.
By avoiding debt, setting aside money, and accumulating wealth, we are being good stewards of God’s blessings.
The Bible’s Teachings on Generosity
By the way, we don’t merely save, invest, and accumulate riches so we can keep it all for ourselves or hoard it. The main reason we accumulate wealth is so we may give it to others.
It’s not merely something God commands us to do to be generous. It’s a feature of how He created us. Our DNA is wired to give. So let each contribute as he or she intends in their hearts, not out of necessity or resentment, for God loves a happy giver, according to 2 Corinthians 9:7 (NKJV).
You’ll never have more fun with money than when you give, we promise.
What then is the pattern of biblical generosity? Our first obligation is to provide a portion of our earnings to the kingdom. Whether you’re a millionaire or still trying to pay off debt, you can accomplish this. Honor the Lord with your assets and the first fruits of all your increase, according to Proverbs 3:9 (NKJV).
Observe how this verse instructs us to give God the first fruits of our labors rather than just the leftovers, which is how the Bible refers to offering the best of what we produce. Giving your local church 10% of your income, or tithing, is a good place to start with that. It should be the first item on your budget.
The remainder of your money should go toward achieving your debt-reduction or emergency fund goals if you’re still trying to do so. After all, 1 Timothy 5:8 (NKJV) states that if a person fails to provide for their own needs, particularly those of their families, they have abandoned the faith and are worse than unbelievers.
In light of this, you should seriously consider contributing more than 10% of your salary once your family affairs are in order, whether this entails giving more to your church or to a cause that is dear to your heart.
As you begin to accumulate wealth (and, ideally, pay off your mortgage early), you may begin to give excessively. You can do crazy things like buy a car for a parent who is living alone or cover someone’s utilities for a year.
According to Proverbs 11:25 (NIV), “whoever refreshes others will be rejuvenated,” and “a giving person will thrive.” That is the main reason we adhere to God’s guidelines for financially handling money.
The financial strategy in the Bible may appear straightforward, yet it always works. It’s time for us to take action and make the decision to do so.
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