Tips for Financial Freedom

Marc and Kaitlyn were arguing a lot lately. They were especially stressed about their financial situation and their debt load. They blamed each other for what was happening. A friend suggested they contact a Christian financial counselor. What they learned saved their marriage. They found that the Bible is full of tips and principles that are as practical as building a house.

Have you ever wished someone had taught you how to manage money when you were young? Inspired money management principles do not change with the times. They are always the same. Once you find them and apply them to your daily life, you will enjoy the blessings of financial freedom. Let’s consider seven of these principles.

Countdown to Financial Freedom

Put God First. This is not just a spiritual commitment. It is by far the most significant financial factor for life management. God says, if you put Me first, I will give you wisdom and bless you. Proverbs 3:9-10 says, “Honor the Lord with your possessions, and with the firstfruits of all your increase; so your barns will be filled with plenty, and your vats will overflow with new wine.” See also Deuteronomy 28:1-14; Malachi 3:6-12; and Matthew 6:31-33. We put God first and receive His blessings when we acknowledge that God created everything (Genesis 1:1) and therefore owns everything (Psalm 24:1). He sustains us. In turn, we manage what He has given us. First, we return His part, the tithe (Leviticus 27:30), and then we bring offerings according to our income. Believe it or not, this is the foundational principle for Biblical money management! Now is the time to trust God to sustain us and to provide for our needs.

Get Organized, Develop a Spending Plan. Instead of living from day to day or paycheck to paycheck, plan and organize your life. A plan shows what’s going on at each stage. An estate plan is not just what you do with your assets when you are nearing the end of life. Instead, it is a life-plan that goes from learning, to earning, to conserving, to returning. If married, the plan should be worked out together. The wise man urged that we should know the state of our affairs (Proverbs 27:23). We should also plan ahead before entering into a big project (Luke 14:28). To follow this principle, complete a simple balance sheet to compare what you own with what you owe.

Avoid Debt. In a recent year, credit card issuers in the United States stuffed mailboxes with more than 7 billion offers. Debt is now the most highly advertised product in Western society! People, businesses, and even governments are accepting these offers of credit and are sinking deeper and deeper into debt bondage. Personal bankruptcies are at an all-time high. Thousands of U.S. families file for bankruptcy protection every week! The Bible equates debt with bondage and slavery. “The rich rules over the poor, and the borrower is servant to the lender” (Proverbs 22:7). The principle here is to be content with what we have. We must learn to live within our income (see 1 Timothy 6:6-10). Presently about 43% of American families spend more than they earn each year. Don’t be one of them. If we incur a debt we are duty-bound to repay it (Psalm 37:21). Interest is one expense you can live without. Why not decide to become debt free? You will then have much less stress in your life.

Save Some from Each Income. Spend less than you earn. Determine to live within your income and save some from every pay period. Take a lesson from the ant. He works all summer and saves for winter (Proverbs 6:6-8). This is one of the hardest points to practice. This means self-denial—delayed gratification. Saving to pay cash for larger repeating expenses like property taxes is highly recommended. Another essential is an emergency savings account. This account can pay for emergencies that would otherwise bust the budget. Those who have at least six months’ worth of living expenses in cash savings in the bank are in much better shape that those who are in debt. A savings account provides protection when a job loss, car breakdown, or health concern threatens your financial security. A little nest-egg can help you weather an economic storm and makes good sense.

Invest Wisely. Keep this truth in mind: No investment is as secure as a repaid debt. Putting your desire to invest ahead of repaying your debts is usually a sign of immaturity, not financial savvy. Solomon encouraged making a variety of investments (Ecclesiastes 11:6). Even today this is a basic investment strategy. In an uncertain world, it is always best to spread out our investments. Conservative choices better protect assets. Remember that stocks and mutual funds are not guaranteed safe, are not covered by insurance, and are subject to 100% loss. With such investments do not spend more than you can afford to lose.

Beware of Get-Rich-Quick Schemes. Believe it or not there are people out there—all over the world—who would like to defraud you of your hard-earned money. The schemers are crafty and appeal to the desire to be wealthy. “But those who desire to be rich fall into temptation and a snare, and into many foolish and harmful lusts which drown men in destruction…” (1 Timothy 6:9). Be warned! Here are the most common elements of a get-rich-quick scheme: 1) Promise of wealth; 2) Something that you don’t really understand; 3) Must risk money you can’t afford to lose; 4) Must make a quick decision. Stay clear of such schemes. Sadly, many times these get-rich-quick schemes are shared with you by your friends who sincerely think they are doing you a favor.

Remember that this Earth is not our Final Home. Keep the long view in mind. Someday soon everything here will get burned up (2 Peter 3:10). This will not be a great disappointment to the true believer. His treasures—the things that will last—will be stored securely in heaven (Matthew 6:19-20). We store treasures in heaven by helping others and helping to advance the cause of God. The words “well done” are spoken to those who manage their money wisely (Matthew 25:21).

The financial stress of our economy can be greatly reduced by following these seven principles. Our loving God gave them to us for our best good.

Like Marc and Kaitlyn, thousands of people have found personal and family peace by learning about and following these Biblical principles of money management. The good news of Jesus’ gospel includes an abundant life right now (see John 10:10). In looking back on his life, King David said, “I have been young, and now am old; yet I have not seen the righteous forsaken, nor his descendants begging bread” (Psalm 37:25). Surely each of us can also see the blessing and hand of God in our lives. May God grant you His wisdom and blessing as you follow His guidance on the road to financial freedom and eternal life.

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