Tonight we are going to look at some Biblical principles of Money Management. Next week we will look at Financial Planning and Goals, and then Budgeting, Becoming Debt Free, Developing a Savings Plan, Retirement Planning.
3 questions that many of us ask about the area of money are:
- Will I ever have enough?
- Will it continue to be enough?
- How much is enough?
Our goal is to “be filled with the knowledge of His will in all wisdom and spiritual understanding”(Colossians 1:9)
We live in a world with mixed up values. Not only is consumer debt spiraling out of control, but the National debt is over 5 trillion dollars. In excess of $20,000 for every man, woman, and child. Repaying it would take 13,500 years if we paid back a million dollars per day if no interest and no further debt. Furthermore, while Americans are clearly the most generous people on the planet in absolute dollars, relatively speaking(considering our great wealth as a nation), the story is somewhat different. Here are some recent giving numbers: 1.7% of adjusted gross income is the average charitable deduction taken on Form 1040, whereas property tax and interest deduction is equal to 18%
God has called us to be salt and light(Mt. 5:13-16), servants(Mark 10:45), stewards(Mt. 25:14-30). This is an area where we have a tremendous opportunity to witness the world, serve the world, and impact the world. Let’s start tonight with two definitions:
Financial planning is the predetermined use of financial resources in order to accomplish certain goals and objectives.
Stewardship is the use of God-given resources for the accomplishment of God-given goals.
Here, in short review are some great “umbrella” principles(Scriptures provided for your additional study)
- God Owns it All…Matthew 25:14…God has rights-I have responsibilities, every spending decision is a spiritual decision, can’t fake stewardship
- Finances are an area of spiritual growth …Matthew 25:21, Philippians 4:11-12, Luke 16:11-12.
Money is a tool, test, and a testimony. “If therefore you have not been faithful in the use of worldly wealth, who will entrust the true riches to you” Luke 16:11
3. The amount is not important…Matthew 25:23
4. Faith requires action…James 2:17
The Tither’s Psalm
The Lord is my partner: I shall not be troubled about temporal propertity. He maketh me to live upon the fat of the land; he leadeth me away from bad investments; he restoreth my confidence in him; he leadeth me to know the blessings of Scriptural giving. Yea, though I pass through a season of business depression, I will not fear for the outcome, for thou, O Lord, will not permit our enterpise to fail. Thou preparest a way and a will to enjoy spiritual blessings more than ever I have known before in all my Christian experience. Thou causeth thy fund to contain enough money and still some for every work of thine. Surely real prosperity..of the heart as well as the purse..shall continue with me as long as I confidently do my part and let him prove what he can do; and together we build up his kingdom unto the everlasting day.”
5. Honor the Lord first and with the best you have
Prov. 3:9-12 “Honor the Lord from your wealth, And from the first of all your produce; So your barns will be filled with plenty, and your vats will overflow with new wine. My son, do not reject the discipline of the Lord, or loathe His reproof, For whom the Lord loves He reproves, Even as a father, the son in whom he delights.”
…little girl given two pennies by mother; one for church and one for candy. Way to Sunday School, dropped one of pennies down a drain…Oh dear, there goes God’s penny.
…little boy given nickel for offering…came home, mother saw him with candy..where get money to buy? Oh, I didn’t need nickel at church, usher got me in free!
Only 5 things you can do with money: give it away, spend to support lifestyle, repay debt, use for taxes, save or accumulate.
- What are the short term financial commitments you have now(less than 1 years).
- What are the long term commitments you have now(more than 1 year).
- What are the priorities for your finances these next 12 months?
- What are your priorities for the period beyond 1 year?
- Is your current net worth in excess of your annual income? If so, how many times?
- Is the total of your current debt(of all kinds) larger than your annual income?