Seven Key Principles of Financial Planning
The Bible provides specific principles regarding money management that work regardless of the current economic climate:
1. God owns it all.
- We are simply managers of His resources
- God can take whatever He wants, whenever He wants
- Every spending decision is a spiritual decision
““The earth is the Lord’s and everything in it, the world, and all who live in it.” ”Psalm 24:1
2. God has a purpose for your life
- Seek to understand God’s purpose for your life
- Build on the strengths He has given you
- Make decisions purposefully –live your life on purpose for a purpose
- Use your financial resources to support your purpose
““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.” Jeremiah 29:11
3. God will provide the resources.
- Trust that God knows what you need before you need it.
- Actively ask God to provide for your needs.
- Seek discernment from God as to how he is guiding you with His provision of resources.
- Seek God Himself verses the gifts that He provides.
“”But seek first his kingdom and his righteousness, and all these things will be given to you as well.” Matthew 6:33
4. Set long-term goals.
- Seek out God’s direction as you set your long-term goals.
- Take the time to write out your goals in key areas of your life.
- Allow for flexibility as God moves you towards the goals He has for you.
- Allow yourself to have fun with goals – set some God-sized goals that will only succeed if He shows up!
“”Suppose one of you wants to build a tower. Will he not first sit down and estimate the cost to see if he has enough money to complete it.” Luke 14:28
5. Spend less than you earn.
- God has provided the resources for you to live the lifestyle he has planned for you.
- Seek His guidance and help to build this lifestyle and live within it.
- Do not compare your lifestyle to others –live as God has uniquely gifted you to live.
- Spending less than you earn for a long period of time is the surest way to financial independence.
- The people who are most at peace with their finances focus on what they have and not what they only wish they had.
- Enjoy “choice food and oil” when God provides it to you and sacrifice when you are called to do so –ask God for help in finding this balance in your life
“ “In the house of the wise are stores of choice food and oil, but a foolish man devours all he has.” Proverbs 21:20
6. Avoid the use of debt.
- Do not use debt to build a larger lifestyle than God has designed for you.
- Always seek spousal unity in the area of debt.
““The rich rule over the poor, and the borrower is a servant to the lender.” Proverbs 22:7
7. Avoid a consumptive lifestyle
“He who loves money will not be satisfied with money, nor he who loves abundance with his income. This too is vanity.” Ecclesiastes 5:10
Scriptural Insights into Financial Planning
“The rich and the poor have a common bond, the Lord is the maker of them all.” Prov 22:2
“In the wilderness He fed you manna which your fathers did not know, that he might humble you and that He might test you, to do good for you in the end. Otherwise, you may say in your heart, “My power and the strength of my hand made me this wealth.’ But you shall remember the Lord your God, for it is He who is giving you the power to make wealth, that He may confirm His covenant which He swore to your fathers, as it is this day.” Deuteronomy 8:16-18
“No servant can serve two masters; for he either he will hate the one and love the other, or else he will hold to one and despise the other. You cannot serve God and mammon.””Luke 16:13
“…while we look not at the things which are seen, but at the things which are not seen; for the things which are seen are temporal, but the things which are not seen are eternal.” II Corinthians 4:18
“Not that I speak from want; for I have learned to be content in whatever circumstances I am. I know how to get along with humble means, and I also know how to live in prosperity; in any and every circumstance I have learned the secret of being filled and going hungry, both of having abundance and suffering need. I can do all things through Him who strengthens me.” Philippians 4:11-13
“ Instruct those who are rich in this present world not to be conceited or to fix their hope on the uncertainty of riches, but on God, who richly supplies us with all things to enjoy. Instruct them to do good, to be generous and ready to share, storing up for themselves the treasure of a good foundation for the future, so that they may take hold of that which is life indeed.” I Timothy 6:17-19
Information Courtesy of:
Kenneth Frenke & Company
15 Loop Road
Arden, NC 28704