• Money is a
training ground
for God to
develop our
trustworthiness,
Luke 16:11
1
Principle 1
Start by Putting God in Charge of Your
Finances
• Ex 20:3 “Do not have other gods besides Me.”
• To determine who is in charge of your finances,
answer the following true/false questions
– God is my ultimate financial advisor. I will trust Him
with everything I have.
– I understand the importance of being a careful
steward of the money that God has entrusted to my
care.
– I will be generous with my tithes and offerings
because I understand that everything I have ultimately
belongs to God.
– When I have a question about my finances, I’m willing
to pray about it.
2
Elizabeth Elliot
• I lived with Indians who made pots out of clay
which they used for cooking. Nobody was
interested in the pot. Everybody was interested
in what was inside. The same clay taken out of
the same riverbed, always made in the same
design, nothing special about it. Well, I’m a clay
pot, and let me not forget it. But, the excellency
of the power is of God and not us.
3
Pray About Your Finances
• Is prayer a habit? Without ceasing? 1 Thess 5:17
• Is it a hit or miss activity?
• Consider
– God hears your prayers and answers them Jer 29:11-12
– God promises that the prayers of righteous men and
women can accomplish great things James 5:16
– God invites you to be still and to feel His presence Ps
46:10
4
• Prayer is not an emergency measure that we
turn to when we have a problem. Real prayer
is a part of our constant communion with God
and worship of God.
• Allow your dreams a place in your prayers and
plans. God-given dreams can help you move
into the future He is preparing for you.
5
Kay Arthur
Have you prayed about your resources lately?
Find out how God wants you to use your time
and your money. No matter what it costs,
forsake all that is not of God.
6
Develop specific steps to take to keep
God first in your life
•
•
•
•
•
•
1
2
3
4
5
6
7
Principle 2
Seek God’s Wisdom in Every Aspect of
Your Life
• Matt 7:24-25 “Therefore, everyone who hears
these words of Mine and acts on them will be
like a sensible man who built his house on the
rock. The rain fell, the rivers rose, and the
winds blew and pounded that house. Yet it
didn’t collapse, because its foundation was on
the rock.”
8
Enhance Your Earning Power and Keep
Enhancing Your Earning Power
• Opportunities to learn are limitless and
change is inevitable.
– Senior classes at COM
– Continuing ed computer classes @ COM
• In today’s competitive workplace, those who
stand still are, in reality, moving backwards …
fast. (Prov 28:19)
9
• Live within your means and save money from
every paycheck. Never spend more than you
make. (Ecc 5:1)
• Use Credit wisely. Don’t borrow money for
things that rapidly go down in value. And if
you borrow money for things that are likely to
go up (your home) borrow only the amount
that you can comfortably afford to repay
(don’t max out your mortgage) (Prov 21:5)
10
• Don’t be an impulsive buyer. Savvy
salespeople want you to buy “right now.”
Savvy buyers take their time. (Prov 21:5)
• Don’t fall in love with “Stuff”. We live in a
society that worships “stuff” – don’t fall into
that trap. Remember “stuff” is highly
overrated. Worship God almight, not the
almighty dollar. (Prov 11:28)
• Make sure that everybody in your family
understands the need to spend wisely.
Financial security is a team sport.
11
• Give back to the Lord. God is the giver of all
things good. What does He ask in return? A
tiny ten percent. Don’t withhold it from Him.
(Mal 3:10)
• Never stop studying God’s Word. Even if
you’re very familiar with your Bible, there’s
always something new to learn. God still has
many lessons to teach you … and you should
be willing to learn. (Ps 27:11)
12
Your value system will determine how
you earn, how you spend, and how
you save money.
• Build your value system upon the firm
foundation of God’s wisdom and God’s Word.
13
Examine Your Priorities
• Are you investing your life in a way that makes
the most of the talents God has given you …
or are you squandering those talents by
allowing your skills to be underutilized?
• If your spending habits are undisciplined – or
if your skills are not being maximized – it’s
time to rearrange your life and your priorities.
14
Prioritize Your Savings Goals*
• Chinese proverb says, “Do not wait until you
are thirsty to dig a well.”
• Becoming part of the landed gentry – real
estate, your own home
• Retiring: sitting on a rocking chair?
Discontinuing full-time work? Not even
working for pay at all
• Educating the kids
• Owning your own business
*Personal Finance for Dummies, Wilely Publishing, p. 8
15
Prov 21:17 “Those who love pleasure
become poor; wine and luxury are not the
way to riches”
• Minimize unnecessary expenditures while
maximizing your skills (and, presumably, your
income).
• Your priorities, passions, goals, and fears are
shown clearly in the flow of your money.
(Dave Ramsey)
16
Draft your personal mission statement
• Your personal value system will determine the
quality and direction of your life, you must
choose those values carefully; and you should
choose them in accordance with God’s
commandments.
• Make your life a mission instead of an
intermission
• Clarify your thoughts and crystallize your plans
17
Develop specific ways to apply God’s
wisdom; use God’s Word
•
•
•
•
•
•
1
2
3
4
5
6
18
Principle 3
Know Where You Stand by Making a
Financial Plan
• A reflection of your faith and your values
• Outgrowth of your commitment to obey God’s
Holy Word
• Doing it “your way” is building on sand
19
Improving your skills will improve your
earning potential so you can
•
•
•
•
Tithe
Purchase Insurance
Have a cash cushion
Develop a retirement strategy
20
Common-Sense Ideas About Investing
Your Money
•
•
•
•
Have an Investment Plan
Diversify
Understand Your Investments
Pay attention to your investments, but not too
much attention
• Invest consistently
• Don’t follow the Herd, buy on the Bubble, or
attempt to get rich quick
21
Common-Sense Ideas About Investing
Your Money, cont’d
• Invest in businesses that make money today,
not in those that hope to make money some
day
• Understand the principle of compound
interest
• Understand the need for adequate liquidity
• While you’re investing, invest in yourself
22
Make a Budget
“The plans of the diligent certainly lead to profit, but
anyone who is reckless only becomes poor.” Prov 21:5
• As a believer, you are called to lead a life of
moderation, maturity, and discipline
• If you’re not saving money, your budget isn’t
working
23
Budgeting Basics
• Your budget should be realistic
• Write your budget down on paper, or if you’re
computer savvy, use money-management
software to organize your finances
• Take into account all major and minor
expenses
• Create your budget in cooperation with your
spouse
24
Budgeting Basics, cont’d
• Leave room for surprises, expect surprises
• Review your budget monthly and compare
with your actual expenses
• Strive to live at a profit; income should be
more than what you spend on expenses
25
Principle 4
Live Within Your Budget
• “Discipline yourself for the purpose of
godliness.” 1 Tim 4:7
• “Apply your heart to discipline and your years
to words of knowledge” Prov 23:12
• “Make every effort to supplement your faith
with goodness, goodness with knowledge,
knowledge with self-control, self-control with
endurance, endurance with godliness” 2 Pet
1:5-6
26
Common-Sense Tips for Saving Money
•
•
•
•
•
•
•
•
Plan Ahead
Generic? Absolutely!
More Convenience Usually Costs More
Coupons!
Off-season Purchases Save Money
Low-cost alternatives to traditional retailers
Understand the Bills You Pay
Wholesale Clubs? Yes, but ….
27
Make the Choice to Live at a Profit
• Don’t collect for yourselves treasures on
earth, where moth and rust destroy and
where thieves break in and steal. But collect
for yourselves treasures in heaven, where
neither moth nor rust destroys, and where
thieves don’t break in and steal. For where
your treasure is, there your heart will be also.
Matt 6:19-21
28
Debt
• Indentured servitude is when you go into debt
to purchase items that immediately go down
in value
• When you finance your purchase, you pay
more
29
Teach Your Children To Manage Money
• Your actions speak far more loudly than your
words – teach by example
• Give them the opportunity to manage their
money
30
Identify Your Biggest Budget-Busters
•
•
•
•
•
•
1
2
3
4
5
6
31
Principle 5
Avoid Debt
• “The borrower is a slave to the lender.” Prov
22:7
• Pay credit card balances off every month
• Never buy consumer goods such as clothes,
furniture, or electronics on credit
• Don’t rent consumer good or electronics on
“rent-to-own” plans
• It’s better to drive a clunker with a small note
than a luxury car that’s “loaded” with debt
32
Learn from Your Mistakes
• “The one who conceals his sins will not
prosper, but whoever confesses and
renounces them will find mercy.” Prov 28:13
• Take responsibility; prayerfully ask God to help
you become a better steward of the resources
He has entrusted to you
33
Principle 6
Build Up Your Reserves
• Prov 21:20 “The wise man saves for the
future, but the foolish man spends whatever
he gets.” TLB
34
Emergency Fund
• How big should your nest egg be?
– If you’re not overly burdened by debt, 2 income
family, living at a profit: 4-6 months living
expenses in cash
– If income is unpredictable then probably keep
cash to support you and your family for a year
• Keep these monies in insured, readily
available, interest-bearing accounts
35
Reserves for differing circumstances
• Three months’ living expenses: choose this option if
you have other accounts, such as a 401k or family
members and close friends whom you can tap for a
short-term loan.
• Six months’: appropriate if you don’t have other places
to turn for a loan or you have some instability in your
employment situation or source of income
• One year: if your income fluctuates wildly from year to
year or if your profession involves a high risk of job
loss, finding another job could take a long time and you
don’t have other places to turn for a loan
*Personal Finance for Dummies, Wilely Publishing, p. 8
36
Self-discipline Every Day
• A self-disciplined lifestyle requires consistency.
And if you want to enjoy the financial security
that belongs to those who adopt a disciplined
approach to life, then you must learn to
control yourself seven days a week.
2 Chron 15:7 “But you, be strong and do not lose courage, for there is
reward for your work.“ NAS
37
Exercise
• From your personal budget, calculate the
amount of cash you need.
– Predictability of your income
– Needs of your family
– Current state of your finances
38
Principle 7
Find Work You Can Be Passionate About
• Col 3:23 “Whatever you do, do your work
heartily, as for the Lord rather than for men..”
NASU
39
Read if necessary
• This book is about happiness at
work. About loving your job - or
finding one you can love. Because
today, happiness at work is no
longer a luxury - it's essential.
People are discovering, that when
they love their jobs, they are
more productive, creative and
motivated. They're also happier
in life. Similarly, happy companies
find they are more efficient,
innovative and make more money
than their unhappy competitors.
40
Discover the work God created you for
• Glorify God by honoring the talents that He
gave you, not the talents that you wish He had
given you.
• Do not fritter precious hours in front of the
television
• Keep searching and praying until you find
meaningful work
41
Maximize the Talents God Has Given You
• Invest in yourself. The world keeps changing
and so should you.
• Plan for your next job now.
• Cultivate and nurture your talents
• Talents are on temporary loan from God to
enrich the world and enrich your life
• Value this gift, nourish it, make it grow, share
it with the world
42
Principle 8
Keep Money in Perspective
• 1 Tim 6:9-10 “For the love of money is the first
step toward all kinds of sin. Some people have
even turned away from God because of their love
for it, and as a result have pierced themselves
with many sorrows.” TLB
43
Greed
• Greed is evil because it substitutes material
things for the place of honor that the Creator
ought to have in an individual’s life.
• Don’t fall in love with “stuff”
• Worship God almighty; not the almighty dollar
• Think more about God’s plan for your life than
about your next acquisition
44
Invite Peace In
• Jesus offers us peace not as the work gives,
but as He alone gives
• Summon courage and determination to
implement a sensible financial plan
• Don’t go after the illusion of “peace and
happiness” that the world promises but
cannot deliver
• Give yourself the peace of Jesus Christ offered
freely
45
Be Generous
• “Freely you have received, freely give” Matt
10:8
• Reap bountiful rewards in accordance with
God’s plan for our lives when we sow seeds of
generosity
• God loveth a cheerful giver
• Share financial blessings with others
• We hurt people by being too busy, too busy to
notice their needs – Billy Graham
46
Character
• The content of your character is demonstrated
by the way you choose to spend money
• God cares about people, not possessions, and
so must we
• Money is not evil; worshipping money is
• Do not let money be your master
• Store up riches to endure throughout eternity:
the spiritual kind
47
Exercise: How Important is Money to
You?
• How much do your possessions mean to you?
• What role does money play in your life?
• Jot down 10 ways you can be more generous
48
Principle 9
Avoid the Trap of Materialism
49
Luke 12:15
• And He told them, “Watch out and be on
guard against all greed, because one’s life is
not in the abundance of his possessions.”
50
Temptations of everyday living
•
•
•
•
Money is a tool
Face life with things spiritual
Do not love the world more than we love God
Debt is a modern-day form of indentured
servitude; pay as you go
• The more we stuff ourselves with material
pleasures, the less we seem to appreciate life:
Barbara Johnson
• Reorder your priorities
51
Resist Credit
• Reduce your credit limit – don’t accept
increases in limits
• Replace your credit card with a debit card
• Never buy anything on credit that depreciates
in value (meals out, cars, clothing, and shoes)
• Think in terms of total cost, not monthly
payment amounts
• Stop the junk mail avalanche
• Limit what you can spend – carry low amts of
cash, no plastic or checks
• Cancel credit card accounts
52
Keeping up with the Joneses
•
•
•
•
Buy based on need
Do not buy to impress
Please God, not the neighbors
Honor God in every facet of your life including
how you spend money
53
• “But godliness with contentment is a great
gain. For we brought nothing into the world,
and we can take nothing out. But if we have
food and clothing, we will be content with
these. But those who want to be rich fall into
temptation, a trap, and many foolish and
harmful desires, which plunge people into ruin
and destruction.” 1 Tim 6:6-9
54
55
Consider
• You are the target of an endless stream of
advertising information to purchase what you
don’t need
• Essential aspects of your life are subject to an
ever-increasing flood of rules and regulations
• Take firm control of your time and life, or you
may be overwhelmed by a tidal wave of
complexity that threatens your happiness
56
Consider
• You are the target of an endless stream of
advertising information to purchase what you
don’t need
• Essential aspects of your life are subject to an
ever-increasing flood of rules and regulations
• Take firm control of your time and life, or you
may be overwhelmed by a tidal wave of
complexity that threatens your happiness
57
Discard
• Material possessions that distance you from
God
• Outside interests that leave little time for your
family and God; get off the merry-go-round
• God wants your full attention today; don’t let
anybody or anything get in His way
58
Credit cards to the blender
59
Exercise
• Assess your susceptibility to peer pressure to
impress your neighbors; why?
• Jot down ten ways to simplify your life
60
Retirement: Plan Carefully
61
• Jer 29:11 “For I know the plans I have for you,"
declares the LORD, "plans to prosper you and
not to harm you, plans to give you hope and a
future.”NIV
62
Check Points
•
•
•
•
•
•
SS will provide a very modest lifestyle at best
Add money to an IRA
Investment in real estate?
Financial reserves building up?
Set a target age for retirement
Assess of Retirement needs
– What will your budget be
– Sources of income
63
How Much Do you Need
• 70 to 80 % of pre-retirement income to live at
the same level
• Or adjust your standard of living
• Become employed by a company with a
pension; vested in 5 years (these are rare)
• Employers can take the retirement money
back, unfortunately
• Retire later instead of sooner
*Personal Finance for Dummies, Wiley Publishing, p. 46-48
64
It wasn’t raining when Noah built
the ark
65
Get-Rich-Quick Schemes
• Invest in things you
understand with a
likelihood of success
• Seek outside
guidance from
proven professionals
• Avoid what seems
too good to be true
• Rewarded
emotionally for good
judgment
66
Diversify
•
•
•
•
Reserve account
Mutual funds
Real estate
Avoid day-trading; weekend stock-picker;
become a real estate expert overnight
• Don’t get greedy
– High risk investments with high return potential
also have the potential of NO return
67
Insurance
• Life insurance to provide for your family in the
event of your death
• Health insurance
• Auto insurance
• Home or renter’s insurance
• Disability policy
• Shop around
68
Plan for your death
• Write a will so the courts don’t decide where
your assets go
• List your assets to go with the will
• Write down an inventory of your insurance
69
Principle 11
Expect God’s Abundance
•
•
•
•
Trust God’s plans
Mind stayed upon God then His peace will rule
Be an expectant, faith-filled Christian
Think optimistically about your life,
profession, family, future, and your finances
• Trust Him and His abundance will overflow
70
• Abundance and obedience go hand-in-hand
• Spiritual abundance is more important than
material abundance
• Thank God for gifts that are simply too
numerous to count
• Follow Christ closely and live more abundantly
• Make all plans with God’s Word as your
compass, God’s Son as your guide
71
We’re Only Stewards
• Challenged to be faithful stewards of resources
and talents
• Don’t squander time, talents or money
• Nourish and grow the talent God has given you,
share it with the world
• Our resources are a one-of-a-kind treasure on
loan from God
• When you become a better steward of the
resources God has given you … He gives you more
resources to manage.
72
“Do not neglect the gift that is in you.”
1 Tim 4:14
73
Exercise: Assess Your Level of
Stewardship
•
•
•
•
•
•
How are you using your talents?
How might I improve my skills?
Do I make good use of my time?
Am I giving God a fair portion of my income?
Am I a cheerful giver?
Do I share my testimony with others?
74
Define what abundance means to you
• Assess yourself on whether you are expecting
God to give you the kind of spiritual
abundance He promises in John 10:10
75
Principle 12
Trust God to Handle Everything,
including your finances
•
Trust in the Lord with all your heart, and do not rely on your own understanding;
think about Him in all your ways, and He will guide you on the right paths.” Prov
3:5-6
76
God has the final word
• Understand the Biblical laws that apply to your
economic well-being
• Apply these laws to your life
• Place God at the center of your heart, trust Christ
for your personal salvation, obey God’s Word; live
by God’s commandments
• Money is a tool, nothing more
• Use money in a disciplined, thoughtful way
• Never lose hope
77
78
Exercise
• Jot down 50 things you are thankful for ….
79