Managing money should be considered an important aspect of our lives. It will help us make sure we have enough for what we need and want. The Bible teaches us about handling money.
In this article, we will see why managing money matters a lot in our daily lives and the guidance the Bible has pointed out about dealing with finances.
Biblical Principles of Money Management
The Biblical principles of money management include stewardship, generosity, avoiding debt, and planning for the future; these principles will be expanded and discussed thoroughly with supporting Bible verses.
Here’s a detailed guide to money management based on biblical teachings:
Principle 1: Stewardship
Stewardship is being a good caretaker or manager. As good stewards, when we are given important stuff like money, time, and talents, we have a job to take care of them.
One fundamental reference is found in the book of Luke, chapter 16, verse 10:
“Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much.”
This verse talks about the idea that our faithfulness and responsibility in handling small things, like resources, reflect our ability to handle bigger things. Being trustworthy stewards of the gifts and resources God entrusts to us will open a bigger door of opportunities.
We have different kinds of gifts. It could be the ability to be a good friend, or maybe being good at drawing, or even having some money. God trusts us with these gifts, and He hopes we will use them in a way that makes Him happy.
A good steward can be likened to a gardener, and God gives you seeds (which are like His gifts to you). Your job is to grow these seeds into beautiful flowers by taking care of them. In the same way, God gives us talents and resources, and He wants us to use them well.
God also says we are accountable. That means we have to be responsible for what we do with the things He gives us. You need to give a report card for how we use our gifts.
Imagine that you have a friend who asks you to look after their favorite toy for a while. They trust you to keep it safe and not break it. Similarly, the Bible says that God gives us money, and he hopes we will manage with prudence
Principle 2: Contentment
The virtue of contentment aids us in money management. With this attribute, we are being happy with what we have, no matter if we have a little or a lot.
Apostle Paul lived an exemplary life of money Management in Philippians, chapter 4, verses 11-12:
“I have learned to be content, whatever the circumstances. I know what it is to be in need, and I know what it is to have plenty. I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or wanting.”
Being content is a special skill that we can learn. We need to be happy and grateful, even if we don’t have everything we want. The Bible says that true contentment comes from trusting God and knowing that He will take care of us no matter what.
Tips for Cultivating Contentment in a Materialistic World
Count Your Blessings: To be in the right course of money management, you need to take time each day to think about the good things in your life, big or small.
Avoid Comparisons: When you avoid comparisons, you will manage your money effectively. You will learn to say “NO” to things that fall on the list of your “WANTS”. Don’t compare what you have with what others have. Everyone’s journey is different.
Focus on Relationships: Now, contentment is more than just being happy with who you are and what you have—contentment is rooted in God’s love for you. It’s learning to be satisfied wholly in Christ regardless if you have a little or a lot of money. The Bible talks about the importance of love and relationships over material possessions.
Be Grateful: Possessing the art of gratitude will make you see beyond what you have physically achieved. Count your blessings and name them one by one in a journal where you write down things you’re thankful for.
Simplify Your Life: Sometimes having fewer things can lead to more contentment and will help you to manage your resources.
Principle 3: Money is a Tool
When you understand that “Money is a Tool.”, you will manage it effectively. If you rough handle your tool, it will spoil before time and if you apply effective preservation techniques, it will last longer than expected.
When we recognize money as a tool, we understand that it’s not an end in itself, but rather a means to an end. It’s a tool that can help us achieve our dreams, support our families, give back to our communities, and live a fulfilling life.
Money is your toolbox, filled with different tools to serve different purposes. Each tool serves a specific purpose, whether it’s fixing something, building something new, or making tasks easier.
Just as you wouldn’t use a hammer to tighten a screw or a wrench to cut a piece of wood, it’s important to use money wisely and purposefully. Money can be misused or abused, hence the need to be careful in handling it.
Proverbs 23:5
Your money can be gone in a flash as if it had grown wings and flown away like an eagle.
This verse tells us that if you do not consider your money as a toolbox that can be kept secured to be other times, it will be rusted ( fly away). People will begin to question you about your present situation of bankruptcy if you do not guard and consider your money as a tool.
Principle 4: Planning and Budgeting
Luke 16:11-12: “If then you have not been faithful in the unrighteous wealth, who will entrust to you the true riches? And if you have not been faithful in that which is another’s, who will give you that which is your own?”
Nobody considers an acclaimed business person who doesn’t plan and budget for a business partnership. Investors consider antecedents of planning and budgeting.
This character shows that you can manage money. Planning and budgeting show accountability and transparency and this will attract more people to pledge their resources in your care.
The Bible shows the advantage of the wisdom of planning and being thoughtful with our resources. In the book of Proverbs, chapter 21, verse 5, it says:
“The plans of the diligent lead to profit as surely as haste leads to poverty.”
This verse encourages us to be careful and thoughtful in our actions. It’s like saying that when we plan well and work hard, good things can come our way.
Steps for Creating a Planned Budget
You may not know how to successfully budget and plan your money to be successful. Now, let’s talk about how we can put this into action by creating a budget—a plan for our money.
Know Your Income: Start by figuring out how much money you have coming in. This could be from a job, allowances, or any other source.
List Your Expenses: Write down everything you spend money on. Include things like food, clothes, and any bills you have to pay.
Differentiate Between Needs and Wants: The Bible teaches about being content with what we need. So, when planning your budget, focus on what you truly need before thinking about wants.
Be Flexible: Life can bring surprises. Leave room in your budget for unexpected things, so you’re not caught off guard.
Review Regularly: The Bible talks about being diligent. Periodically review your budget, make adjustments, and ensure you’re staying on track.
Principle 5: Avoid Debt
Another way you can manage your money is to avoid debts. The Bible has some wise words about being cautious with debt. In the book of Proverbs, chapter 22, verse 7 it says:
“The rich rule over the poor, and the borrower is a slave to the lender.”
Owing money can make us feel a bit like we are in a tight spot. A lot of challenges come with borrowing.
Live Within Your Means: If you live within your means, you will never consider borrowing. The Bible encourages contentment with what we have. Pray to be contented and not spend more money than you have to avoid debt.
Emergency Fund: Having a little fund for unexpected situations can prevent the need for borrowing in emergencies.
Budgeting: Planning your expenses and income can help you stay on track and avoid unnecessary debt.
Save for Large Purchases: Instead of using credit for big things, save money over time to buy them without debt.
Avoid Impulse Spending: Think before making purchases. Impulsive buying can lead to debt that could have been avoided.
Principle 6: Save and Invest
In the Bible, there’s a principle of saving and being responsible with the resources we have. While it might not specifically talk about investing, the idea of being wise with what we’ve been given is present. One verse that reflects this idea is from the book of Proverbs, chapter 21, verse 20:
“The wise store up choice food and olive oil, but fools gulp theirs down.”
Wise people save and invest, while foolish ones use everything they have without thinking about the future.
So, it’s a good idea to set aside some money from what we earn. Think of it like saving for the future, whether it’s for something special or unexpected.
You can save in fixed deposits so that by the time you want the money, there are some dividends of the money or you can invest in stocks or bonds. Diversifying investments is like not putting all your eggs in one basket. In the book of Ecclesiastes, 11 verses 1-2 (GNB)—Bible Society.
“Invest your money in foreign trade, and one of these days you will make a profit. Put your investments in several places — many places, in fact — because you never know what kind of bad luck you are going to have in this world.
Spread out your investments, so you do not rely on just one thing. It’s a bit like having different seeds in different fields; some might do better than others, but you’re not relying on just one.
Principle 7: Seek Wise Counsel
You may wonder why this is also a principle of money management. Of course, it is! The principle of seeking wise counsel and financial education is crucial for effective money management.
Proverbs 15:22 says, “Plans fail for lack of counsel, but with many advisers, they succeed.”
You can see that the Bible backs up this principle. It is important to seek advice and guidance from knowledgeable and experienced people when making financial decisions. Seeking wise counsel allows us to benefit from the perspectives and insights of others, helping us make informed choices and avoid costly mistakes.
Proverbs 19:20 advises, “Listen to advice and accept discipline, and at the end, you will be counted among the wise.”
This verse shows the value of learning and acquiring knowledge, including financial education. By educating ourselves about money management principles, budgeting, investing, and other financial topics, we empower ourselves to make sound financial decisions and navigate the complexities of personal finance more effectively.
Proverbs 13:20 states, “Walk with the wise and become wise, for a companion of fools suffers harm.” Learning from the experiences of others, both their successes and failures can provide lessons that can inform our own financial decisions. Whether through mentorship, books, seminars, or online resources, we can glean wisdom from those who have walked the path of financial stewardship before us.
Discernment in Advice
While seeking counsel, also exercise discernment in evaluating the advice we receive. Proverbs 14:15 cautions, “The simple believe anything, but the prudent give thought to their steps.” Not all advice is wise or beneficial, so we need to weigh the counsel we receive against biblical principles and our values to ensure it goes in line with God’s wisdom.
Continuous Learning and Growth
Proverbs 1:5 encourages us to, “Let the wise listen and add to their learning, and let the discerning get guidance.” Money management is a lifelong journey, and there’s always more to learn and discover. By committing to ongoing financial education and seeking counsel throughout our lives, we can continue to grow in wisdom and make increasingly informed and responsible financial decisions.
Conclusion
Through the 7 biblical principles of managing money, we’ve discovered wisdom that helps us with our finances.
Wrapping up, it’s clear that it’s about how we handle our money. When we apply these guidelines, we might find ourselves in a better financial position, but even more importantly, we grow spiritually and get closer to God.
So, let’s commit to being responsible with what we have, find happiness in our circumstances, give generously, work hard, make smart plans, stay away from debt that we don’t need, save, and invest for the future.
