It is written: “Precious treasures and oil are in the dwelling of the wise, but a foolish man swallows them up ”(Proverbs 21:20). This is another financial biblical principle. By having money set aside for “big-ticket items” you won’t be tempted to use credit cards to buy them ”. “Saving money before making a purchase is one of the wisest ways to avoid financial worries,” says Dr. If we have a lot of revolving debt, pay it off quickly, starting with the card with the highest interest rate.įinancial planners generally suggest that we save at least 10% of your income each month. Have three different accounts: a short-term savings account for big purchases (like new furniture or car repairs) a long-term savings account (for your retirement or your children’s school fees) and a relief fund (in the event of dismissal or unforeseen expense). We are no longer free to decide how to spend our pay, being obliged to repay these debts.Ĭontrolling your debts means being careful in your credit purchases. “Borrow only for purchases that will increase or maintain their value, like a house or school fees,” advises Erica Sandberg, a consultant with a San Francisco financial management agency. Don’t take out loans at high interest rates, for things you can do without and are likely to depreciate quickly, like a new car, clothing, furniture, appliances or jewelry ”.Īccording to a report for 2018, the average interest rate for a credit card in the United States is around 17%. In other words, we will pay 170 € interest, per year, for a debt of 1000 €. If we only pay the minimum required each month, we will end up paying much more than the original price of your purchase.Įrica Sandberg advises us to only use a credit card if we are able to pay it off when we receive the bank statement at the end of the month so that we do not have to pay interest. If we carry a heavy burden of debt, in short, we are the slaves of our creditors. The Bible warns us against indebtedness: It is written: “The rich rule over the poor, and he who borrows is a slave to him who lends” (Proverbs 22: 7). Yet they did, and had enough – sometimes even more than enough – for their physical needs.Ī friend said to me, “Paying tithing has helped me trust God, not just looking at the ‘facts’ from a human perspective, and it reminded me that we can count on God in all situations ”. Oftentimes, tithers can remember times when – at least on paper – it seemed like they couldn’t afford to pay it. Tithing can also help us learn to trust God more and have a more intimate relationship with Him. It can lead to improved family finances, helping us to be better spouses, better friends, acquaintances, employees, and employers. Financial management expert Dave Ramsey explains in his blog that tithing teaches us to be good stewards of the goods God has entrusted to us and to live without being selfish. These blessings can be either physical or spiritual. Gustafson. It’ll take determination to do this, but it’s a necessary step if you want to be on top of your finances. (For more information in this area, read our article “The Bible, Your Budget, and You”). in a specific category, stop spending, advises Dr. ![]() ![]() Once you have established your budget, either a ledger or a program designed for this purpose on your computer, in order to begin to identify your monthly expenses, “if you find yourself in a situation where you have no more available money. To establish your family budget, calculate what your various monthly needs are (such as shelter, food, transportation, recreation, clothing, health, etc.), and compare them to your monthly income. If your expenses exceed your income, you need to eliminate unnecessary purchases. ![]() “Budgeting helps us avoid impulse and unnecessary spending, live within our means, and prepare for future needs,” said Bill Gustafson – senior director of the Center for Financial Responsibility at Texas Tech University. If we don’t plan our finances carefully… we will end up going broke ”. ![]() It is written: “Know well each of your sheep, take care of your flocks” (Proverbs 27:23). In modern parlance, we need to be aware of the use of our income, in order to determine if we need to make some adjustments in our spending. In short, a budget is a black-and-white plan to control our income and expenses. The Bible does not use the word budget, but it does offer specific guidance on the importance of this kind of planning. We offer you 6 biblical financial principles, along with advice from several consultants. 6 Biblical Principles of Good Financial Management
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