Managing money can be a challenging task, but as a Christian, there are biblical principles that can guide someone's decisions and actions. By following the principles, people can build a wealthy future while honoring God with their finances. Here are some fundamental biblical principles for money management according to Ramsey Solutions:
1. Avoid Debt
Proverbs 22:7 says, "The borrower is a slave to the lender." This verse highlights the dangers of debt, which can lead to financial stress, loss of freedom, and a lack of control over one's finances. The Bible does not give an out for debt if you are "smarter than most people," and that kind of thinking can lead to trouble if you are not careful.
However, according to Christian Stewardship Network, Exodus 22:14 and Ps 37:21 that a debt that has been incurred should be repaid in full. Someone who will not pay back their debts has a wicked heart, not the kind of heart God wants us to have, which is generous and giving. When we take out any loan, we must consider how quickly and easily we can repay it. Another concept, the principle of surety, is violated when one borrows without a guaranteed repayment method.
2. Create and Adhere to a Spending Plan
Have you ever been concerned that you wouldn't have enough money to make it until your next paycheck? In Luke 14:28-30 (NKJV), Jesus taught his disciples the value of setting financial goals. He says, "Suppose one of you wants to build a tower. Can you first estimate the cost to see if you have enough money to complete it? For if you lay the foundation and are not able to finish it, everyone who sees it will ridicule you, saying, 'This person began to build and was not able to finish.'"
Accordingly, if you want to handle your money wisely and in a pleasing way to God, you must put in the time and effort to create a plan and assign a purpose to every money you bring home before the month begins.
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3. Finance Your Way to Prosperity
According to Proverbs 13:22, "A good person leaves an inheritance for their children's children, but a sinner's wealth is stored up for the righteous." This verse emphasizes the importance of planning for the future and leaving a legacy for future generations. To apply this principle to money management, consider creating a financial plan with provisions for your children and grandchildren for the future.
4. Live Within Your Means
Proverbs 21:20 says that wise people "store up choice food and olive oil, but fools gulp theirs down." This metaphorical language suggests that intelligent people save and invest for the future, while foolish people spend everything they have without regard for the future.
Living within your means involves creating a budget that outlines your income and expenses and allows you to allocate your resources effectively. In addition, by tracking your spending and being intentional about where your money goes, you can avoid overspending and use your resources wisely.
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