Good money managers organize their lives to know when bills are due and how much is owed and they pay their bills on time. They also immediately record checking deposits and withdrawals and balance their checkbooks every month to ensure that they are able to pay future bills and that money is not illegally taken from them by financial institutions and thieves. Godly stewards also listen to the voice of the Lord to understand how He would have them give, save, and spend within the boundaries of what the bible in general says about the focus that Christians should have and maintain throughout their lives.
In order to have a healthy financial life, you must organize your life to know the state of your income and expenses. The quickest way to do this is to keep your checkbook balanced each month. Also, you must develop a budget (an income giving, spending, and saving plan). In addition, you must do the best you possibly can to ensure that your expenses do not exceed your income in any given month and that you have assets to cover shortfalls in the few months that this might be the case due to unexpected periods of unemployment.
You should not purchase any products or services using credit when you do not already have more than enough money to pay off the account immediately. If you don’t have cash on hand right now to buy it, then you should forego the purchase and allow God to supernaturally bring it to you free of charge (if you really need it) or in a way that will not lead to possible financial bondage if your income producing projections don’t work out like you envisioned.
The first entry in your monthly budget should be to set aside at least ten percent of your income (the tithe) and give it to your local church where you receive your spiritual food, fellowship, and discipleship. If you don’t have a church, you need to find a bible believing church and allow the Holy Spirit to plant you in that local representation of Christ’s body. When you forsake the regular assembly of believers you cannot be truly fulfilled and prosperous no matter how much money you make or assets you have.
Your God-given purpose is intertwined with fellowship and discipleship within a local expression of the body of Christ. Thus, interacting with leaders and members within your local church and other believers, you are called to make ministry service (evangelism and discipleship of others) the priority in your life that guides every other endeavor you pursue (career, friendships, recreation, education, business, etc.).
Next, your month to month budget and checkbook should display that you firmly resolve not to spend more than your gross income minus your tithe, taxes, and reasonable savings. If necessary, you must resolve to work extra for a short time or create a no or low cost income producing opportunity in order to eliminate current debts, create no further debt, and to put away an emergency fund of at least one month of income as soon as possible.
Then, after you have paid of all non-mortgage debt using the debt snowball or top down highest interest, lowest balance payment method you should seek to save at least six months of income. The emergency savings strategy will help you avoid situations where you would otherwise put more charges on credit accounts in order to cover what you perceive as emergency situations. This strategy will help you stop reverting back to the old undisciplined financial pattern that left you broke, disgusted, and not to be trusted!
Finally, after you have eliminated all your debt and built your emergency savings fund you should begin to put monthly savings that would take you over the six month income level into no-load investments (no sales charges – front or back end) in your 401k, 403b, 457, Roth IRA, or in an investment account with a major brokerage such as Vanguard, Fidelity, etc (hopefully, in tax deferred accounts as much as possible). It is best to put this on automatic pilot by having the contribution taken directly out of your paycheck or checking / savings account each month so that you don’t fail to write a check to deposit the amount and so you won’t be tempted to spend the money on a material item that will be forgotten or unused after it is purchased.
Once you’ve followed the above described financial path, you’ll begin to accumulate assets at an astounding rate and the power of compounding interest over the next 10, 20, and 30 years will exponentially expand your investments. You will begin to live the biblical instruction, “be fruitful and multiply…and have dominion over the Earth!” The biblically-based organization that you follow and the increased income and assets that God entrusts to you will allow you take dominion in every area of life, such as properly caring for your family, tithing to your local church, funding missions in your community and around the world, funding ministries that you are directly and physically involved in, helping the poor, widows, and oppressed, etc.
This wealth building scenario will not likely happen for you if you are not committed to living out God’s debt-free plan. You must forsake the temptation to create monthly bills that add up to an amount that is greater than 50% of your gross income. Setting your spending bar at this level will save you more financial trouble than you can imagine and allow you to carry out your abundant giving and wealth building financial plan.
Again, allow God to bless you with products and services you need that you can't pay cash for right now. If God doesn't bless you with them, then you don’t really need them. Continue to have patience with God’s financial plan and you’ll soon find that you can get not only what you need but many of your desires because you have delighted yourself in Him spiritually and financially. When your life is balanced in this way, abundant blessings cannot help but be poured out on you in due time.
Please pray for this ministry and email any questions. May God bless you richly as you follow His plan!!!
Proverbs 27:23-24, Isaiah 55:10-11, Luke 14:28-32, 2Corinthians 9:10-12
Please forward these bondage breaking articles to other people who can use helpful insight!!!
You can find books authored by Randy and Karen Parlor at www.Amazon.com.
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