Money Management in the Bible
Money Management = Make it + Spend It
Making = earning, what you do to earn it, what principles guide you when you decide what to do to earn $? What are some good Biblical principles?
Spending – what you do with it, how, where you spend it. What principles guide you when deciding how to spend $$ ? What are some good Biblical principles
Making it
Gift from God – Duet 8: 18 – But thou shalt remember the Lord thy God; for it is He that giveth thee power to get wealth, that He may establish His covenant which He swore unto thy fathers, as it is this day.
The power to make money, not money. God will not do for us what he has empowered us to do. The power company gives you power but you have to turn the light switch on.
Do you know what your power to make money is, how God has gifted you this power?
Do you know how to turn on your “wealth switch”
Wealth = Money?
Spend = use – How do you use $$, What Biblical principle guides our decisions on how we use money?
Parable of the Talents – Matthew 25:14–30
- Growth & investment – does it yield more (key words, v 27 “mine own with ursury”, v30 “unprofitable”
- God expects “multiplication” -Be fruitful & multiply – from the beginning
- God gives us the seed. Not to eat but to plant, cultivate & grow. Concept of seed money, venture capital. God gives us all seed – which is our “power to get wealth”. In various proportions.
Count the cost of spending a dollar !
The nonmonetary cost – when you spend a dollar it costs you more than a dollar. Count the true cost of every decision, especially your decisions on how to spend/use $$. Luke 14:28.
Every $ you spend has an opportunity cost – cake and eat it concept. If you spend $100 on a pair of sneakers that is $100 you don’t have to spend on something else or maybe spend less on (unless you have limitless $$ !). Count the cost so at least you know the true cost of the $ you spend.
Follow up costs = buy a car, follow-up cost = gas, insurance etc
Spiritual Myths about God & Money
If you are a good Christian God would bless you with money. Some texts that can be misconstrued
- Bring ye all the tithe & prove me now herewith …
- Prov 10:22 – The blessings of the Lordmaketh rich.
- Mathew 6:33 – Seek ye first the kingdom of God and all these things shall be added unto you (referring to material things)
- Proverbs 3: 9-10
- Deuteronomy 28
The love of money is evil
- 1 Timothy 6:10 – often misquoted. Some say money is root of evil, or some say love of money is evil
- Money is not evil – if it is a gift from God
- Loving money can’t be evil if it is a gift from God
- But the love of money can be the “root” of evil if it is mis cultivated, misdirected.
- What are some ways you can prevent the love of $$ root from bearing evil fruit?
We must be content with whatever we have – content with being broke? Compare to parable of talents- definitely not content
If you have faith you can pray for financial blessings and you will get it.
- Wealth or poverty is no indication of your faith
- Misused text – faith can move mountains, ask and shall receive, etc
What is money?
- Medium of exchange that we exchange for achieving goals & dreams (not goods & services because the goods & services are the embodiment of our goals & dreams)
- A tool in God’s tool box that he sometimes uses to help us achieve our goals and dreams
So are there other mediums of exchange or tools that help us get to our dreams and goals? YES
- Sometimes we pray for financial blessings to reach our goals and God chooses the medium / tool he knows would benefit us most.
- What are some of these other mediums of exchange / tools?
- Examples –
- Moses secured the release of Israelites because God gave favor
- Personal examples- Mortgage
- People / relationships
- Health
- Ability to be a quick learner
There’s a pretty good chance that if God chooses NOT to give us the medium/tool of money that He has or will give us something just as powerful, beneficial so we can maximize what he created us to be.
Find that thing he has given you!
How do you see God determines how you use money
- As a good father who knows how to give good gifts. SO if you have been given the power to get wealth then you acknowledge the goodness of your father, Math 7: 11
- As a harsh task master – servant with 1 talent Luke 25:24
- As a wise God – who knows whether money is the best tool for us to reach our goals
- As the ultimate source of good – who doesn’t always need a medium or tool to get you to your dreams and goals
A balanced attitude toward money
- Remember who’s the boss – Money should work for you harder than you work for money. Learn how to do that.
- Love money, a healthy love, because you love the giver of the gift to make money more than you love money.
- Be fine either way – Paul says, “I have learned that in whatever state I am there with to be content”. Content is not the same as complacent. Philippians 4:11
- Remember, Money is only useful if spent to benefit others in some form or fashion. People that accumulate $ are not wealthy – Luke 12: 15 – 21, 1 Peter 4: 10
- The nonmonetary cost – when you spend a dollar it costs you more than a dollar. Count the true cost of every decision, especially your decisions on how to spend/use $$. Luke 14:28.
Every $ you spend has an opportunity cost – cake and eat it concept. If you spend $100 on a pair of sneakers that is $100 you don’t have to spend on something else or maybe spend less on (unless you have limitless $$ !). Count the cost so at least you know the true cost of the $ you spend.
Follow up costs = buy a car, follow-up cost = gas, insurance etc
Bad Attitude towards money
Wrong attitude towards money is the real poverty. If all the money owned by the worlds 100 richest people was taken away from them and spread equally among everyone in the world, chances are that within a few years all that money would be back in their pockets. Because the people who would have received it would probably have a unhealthy attitude towards money and thus be unable to keep it.
Being a millionaire is not in have a million dollars, it is in having a million-dollar attitude about money. Parable of Prodigal Son – had the wrong attitude towards money and lost it all in short order.
What are some unhealthy destructive attitudes towards money?
- Money makes you “the man” – Prodigal son thought that getting his $$ from Dad would make him the man.
- Money earns respect – It doesn’t even though in the “world” we attach respect to money. Do you know wealth people who are not respectable? And poor people who you have high respect for?
- Lack of money means misery – your happiness should not depend on money. ”- Jay-Z “I have a lot of happiness, but that doesn’t mean that the two (money and happiness) equate to each other…they’re not tied to each other…. Bible Paul – I have learned to be content in what ever situation I am in, whether I have a lot or not.
Unique challenges
Debt – the millennial generation is the most in -debt
- Be smart about debt, know what type of debt is good and which is bad
- HAve a Producer mindset not a debtor mindset – can you make/earn what you need before you borrow it? Applies to more than $$
- Manage your DTI – Debt to Income Ratio
Lack of planning – because of “the future is so far off” attitude
- Bible text – Ecclesiastes 11:1 – cast you bread upon the waters and it shall return after many days – Proverbs 6: 8 – The ant stores away food in the summer so it can have food in the harvest time/winte
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Budgeting
- Its boring, tedious – the way we’ve been taught
- Use broad approach rather than line item.
- Broad =
- Determined (housing, investing in self)
- Variable – necessary but fluctuates – eg utilities, food etc
- Discretionary – not necessary but nice to have –
- Guiding principles for budgeting – align with God’s expectations and your goals.
- Educate yourself – learn from a pro if you must
by W Vernon Murray
