My daughter was born in 2019. And I took some much needed time to just get away from everything. I was present for her and my wife and helped as much as possible. So grateful for the opportunity God has given me. In that time I also spoke with many of you, and wanted to give back and share some knowledge and experience with all of you. Between sexuality and finances, you wanted to learn more about managing your finances and well, becoming wealthier. I wanted to start with a few principles, and later go in depth about each one of the topics and then some. If you want to add anything please don't hesitate to reach out via email or commenting below.
The first principle is that God is the source of everything. Philippians 4:19 says, "My God shall supply all your need according to his riches in glory by Christ Jesus." Proverbs 8:20,21 adds, "I lead in the way of righteousness, in the midst of the paths of judgment: that I may cause those that love me to inherit substance; and I will fill their treasures."
And 2 Corinthians 9:8 says: "And God is able to make all grace abound toward you; that ye, always having all sufficiency in all things, may abound to every good work." Whenever we need money or possessions, prayer is the answer. Look to the Lord, because He will provide it-according to His will.
The second principle is that of giving. Luke 6:38, a key verse, says, "Give, and it shall be given unto you; good measure, pressed down, and shaken together, and running over, shall men give unto your bosom. For with the same measure that ye mete withal it shall be measured to you again." According to Deuteronomy 14:23, one purpose of tithing was to teach the people of Israel to put God first in their lives.
I find there are a couple of ways I can put God first daily. One is to have a quiet time. If I am unwilling to meet the Lord each morning when I get up, that means I'm putting somebody else or something else before the Lord.
For example, how many people have thought seriously about not taking the daily newspaper? The man who is unwilling to cancel a newspaper subscription, which is keeping him from reading the Word of God, may often be the same man who is having trouble making the payments on the TV set that is keeping him from doing the things that would help him grow closer to the Lord. So it can be a vicious cycle. And with TV commercials by the dozens exhorting him to buy, spend, charge and go, is it any wonder that thousands of people are so molded by the world?
Having a quiet time is one way a person can put God first. I believe another is to commit a tenth of his income-right off the top-to the Lord's work. Proverbs 3:9, reads: "Honour the Lord with thy substance, and with the firstfruits of all thine increase: so shall thy barns be filled with plenty, and thy presses shall burst with new wine."
The third principle is that of living on a margin. Everyone ought to live on a margin-a physical margin, a spiritual margin, a time margin and a financial margin. Living on a margin simply means allowing room for things to happen.
There are really only three ways a person can arrive anyplace. He can arrive early, on time or late. I used to aim at arriving right on time, and I consistently arrived five minutes late. That's because I allowed no margin.
Those precious minutes add up. Think of the cumulative effort, on health alone, of continually spending 15 minutes hurrying to be five minutes late. I workout three times a week at the YouFit to stay (try to at least) in shape, and I try to eat right and keep my weight down, since I want to serve the Lord and therefore don't want to die of a heart attack. But 15 minutes of hurrying three times each day for 15 years adds up to nearly six months of 24-hour days when I'm under unnecessary stress, just hurrying to be late. And stress is a leading cause of so many illnesses. How ridiculous! But the Lord led me to operate on a time margin-planning to arrive early rather than hurrying to be late.
The fourth financial principle concerns saving money-setting something aside for a rainy day. Proverbs 21:20 says, "There is treasure to be desired and oil in the dwelling of the wise; but a foolish man spendeth it up." And Proverbs 22:3 emphasizes, "A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished."
For a simple example, if a couple with an income of $12,000 a year would save $1,000 of it each of those years and let this money earn 6 percent interest, compounded annually, they would have $24,672.56 at the end of a 15-year period.
If at the end of 15 years of saving faithfully, a son or daughter is ready for college or the family needs to move into a bigger house or wants to serve the Lord on a full-time basis, the couple can start to withdraw their savings. They can withdraw $2,000 a year for 10 years and still have $15,322.17, or slightly more than they set aside. Isn't this making your money work for you? God has a reason for the principle of saving money.
The fifth principle is to keep out of unnecessary debt and thus avoid the debt trap. Borrowing for a house or car is one thing but taking on financial obligations one can't keep-buying beyond the ability to pay-is another. Psalm 37:21 says "the wicked borroweth, and payeth not again." The minute a person goes into debt, he loses a portion of his freedom. As Proverbs 22:7 says, "The rich ruleth over the poor, and the borrower is servant to the lender."
Suppose this same young couple with the $12,000 annual income had decided that instead of saving $1,000 a year, they would go into debt for $1,000 to buy some furniture. And suppose they continue to increase their indebtedness by $1,000 during each of the 15 years, without paying back one cent. With 10 percent interest, compounded annually, on the increase in debt, the couple's debt would have been an astronomical $34,949.74. The debt on $1,000 alone for that same period, without any repayment, would have been $4,177.21.
Too many people think you can buy now and pay later. That isn't true. I've found that easy credit now makes people uneasy later. Usually a person pays more for the use of borrowed money than he gets in interest for saving it.
The sixth principle is being content with what one has. Hebrews 13:5 puts it succinctly: "Let your conversation be without covetousness; and be content with such things as ye have: for he hath said, I will never leave thee, nor forsake thee."
One area where people often first become discontent involves the old automobile. Too many persons trade or sell their cars before they are used up. There's a big difference between fixing up the old junk heap to drive three more years and buying a new car. Many salesmen make the slick remark, "You just make that easy monthly payment." There is seldom anything easy about that monthly payment. It seems to get harder to make all the time. Second Corinthians 6:10 is so beautiful to apply here. It reads: "As sorrowful, yet always rejoicing; as poor, yet making many rich; as having nothing, and yet possessing all things."
My friends in the automobile business tell me that most cars are good for more miles than most people put on them. Just because a car has over 100,000 miles doesn't mean a person has to get rid of it. Look at some of the buses, trucks and cars still going strong, especially in countries outside North America. They are cars of the same age and mileage that other people junked years ago.
A worthwhile saying to remember on contentment is this: "Use it up, wear it out, make it do, do without."
I drive a 2013 Nissan Altima, and I bought it because at the time, it was 3 years old, meaning the depreciation has slowed down the most. The payment was below what I wanted it to be, and it's one of the top cars in North America that holds value for longer.
The seventh principle is that of keeping records and making a budget. God's Word says, "Buy the truth, and sell it not; also wisdom, and instruction, and understanding" (Prov. 23:23). "Through wisdom is an house builded; and by understanding it is established: and by knowledge shall the chambers be filled with all precious and pleasant riches" (24:3,4).
If someone were to tell me that he's going to run his business without keeping any records, I would say this is downright stupid. And it is even worse for one who really wants to be a good steward of the Lord's money.
My wife and I have monthly budgeting meetings. I budget with every check actually. But we meet and discuss any expenditures we have coming up, any planned expenses like travel or purchases over $500 we need to make. We also set limits on pretty much all things.
Best app for that, that's completely free is called Mint.
The eighth principle is, don't cosign. God says in Proverbs 27:13 to exercise extreme caution in cosigning. The advice infers that the world's poorest credit risk is the man who agrees to pay a stranger's debt. When a person cosigns a note, he is the one who is really borrowing the money. The reason a person needs a cosigner is because the lender is unwilling to lend that money to the person requesting the loan.
Given you guys are probably pretty young, you still have a clean record. Don't cosign. It'll only set you back personally and create extra stress in your family's finances. Trust me.
The ninth principle is that of hard work. The Scriptures spell it out: "In all labour there is profit: but the talk of the lips tendeth only to penury [poverty]" (Prov. 14:23). "He that tilleth his land shall have plenty of bread: but he that followeth after vain persons shall have poverty enough" (28:19).
It is important to work. "In the beginning God created" (Gen. 1:1). Even God is at work. This is a principle throughout the Bible. Many times I find that people in financial trouble aren't really working hard. I have often discovered in counseling young men in real financial trouble that they are "tooling" around too much of the time and putting 2000 miles a month on the car. I advise them to take a second job. This increases their income and decreases their expenses and it keeps them from misusing or frittering away their time.
The last principle is that of seeking godly counsel. Psalm 1:1 declares, "Blessed is the man that walks not in the counsel of the ungodly." A person needing financial advice should not go to someone who makes his living selling the very thing he's contemplating buying. "Without counsel purposes are disappointed: but in the multitude of counsellors they are established" (Prov. 15:22).
Before buying a house, purchasing a car or just borrowing money, pray about it and seek the counsel of godly people. They can keep you from making a lot of mistakes. The reason so many persons don't seek counsel is that they don't want to be told by someone an intended action is unsound-they just like to do what they want anyway.
Above all, don't sign anything until you check the deal thoroughly first. Don't be hurried into any deal. The worst deal in the world is often the one in which a person is rushed into signing-capitulating to a relentless salesman's chance-of-a-lifetime-offer pressure tactics. The best offer in the world can wait.
These are the ten biblical financial principles: God is the source; give first; live on a margin; save money; keep out of debt; be content with what you have; keep records; don't cosign; work hard and seek godly counsel.
As one learns to follow these eternal principles in his personal finances, he will know the joy that comes from trusting and obeying God.