Personal Finance 2
Last session we discussed: God owns it all, we are stewards, seek wise counsel, expect uncertainty, and have a plan and stick to it. How do the world and Christians look at finances differently?
Author
Tommy Warren
Finances
Personal Finance 2
Last session we discussed: God owns it all, we are stewards, seek wise counsel, expect uncertainty, and have a plan and stick to it. How do the world and Christians look at finances differently?
Tommy Warren
FINANCIAL BASICS
Spend less than you earn (Proverbs 13:11)
- A basic principle every household and government should follow
- Our yearning capacity will always exceed our earning capacity
- We will never be without if we consistently follow this basic rule
- For the Christian, giving should be our first spending
Avoid the use of debt (Proverbs 22:7)
- The rich rule over the poor, and the borrower is servant to the lender
- Develop a debt-free mind set
- List everything you own and everything you owe (a balance sheet)
- Recognize we need to plan for nonmonthly bills (insurance, Christmas, etc.)
- Establish a spending plan (budget)
- Consider the need for additional income
- Develop a long-term plan to avoid debt on vehicles
- Consider a radical change in your lifestyle
Build an emergency fund (Proverbs 6:6-8)
- The priority is to repay high-cost debt first
- A 3-to-6-month liquid fund is the goal
- Emergencies are called emergencies for a reason; they are never planned
- Generally, requires a focus on needs vs. wants
Set long term goals (Philippians 3:14) (Matthew 25:14-30)
- God tells us to invest and praises those who do
- Set written specific lifetime goals regarding housing, education, retirement, etc.
- Ask why you are accumulating: seek contentment, not hoarding
- Magic of compounding; cost of consumption
- Invest for the future. Start with 401(K)
- Seek godly counsel
Enjoy what God has given you. Plan for “last breaths” (Psalm 145:7) (1 Timothy 5:8)
- Replace worry with trust and prayer; replace comparison with contentment; replace selfishness with sacrifice; replace false guilt with gratitude
- We can’t protect for every event financially
- Don’t be lazy but don’t overwork
- Don’t forget insurance (property, life, disability)
- Plan for the “distant” future. Have a will. Powers of attorney.
Summation
God blesses generous people and wants us to experience financial freedom, free from worry about shortages or the stresses of overabundance and hoarding.. The plans and financial attitudes of a Christian should be focused on giving and an eternal perspective. Taking care of our family is important and one of the greatest gifts we can give those who follow us is a well thought out and documented plan for passing on what we leave behind.
