We must obey God’s commandments. But many of the Bible’s financial principles are really suggested rules that bring great blessing when followed. Ignoring them, on the other hand, often leads to debt, anxiety, and financial calamity. Today, Rob West shares 10 Biblical financial rules to help you achieve true financial freedom.
So if violating the Bible’s guidelines for sound handling of money leads to trouble, why do we do it so often? It often comes down to immediate reward vs delayed gratification. Following the rules requires discipline that pays off later. On the other hand, when you break a rule by making an impulse purchase, for example, it feels good in the moment, but you’ll pay the price in the long run.
10 RULES FROM GOD’S WORD:
Here are 10 rules, based on wisdom found in God’s Word, that you’ll be glad you followed!
1. Spend less than you earn! Proverbs 21:20 reads, “Precious treasure and oil are in a wise man's dwelling, but a foolish man devours it.” And, of course, you’ll probably never spend less than you earn if you don’t live on a budget. So that’s the next rule …
2. Prepare a written spending plan. Write out all your income and expenses. Set spending limits for each category and stick to them. In Luke 14:28 we find, “For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it?”
3. Analyze your monthly bills. If you don’t do this fairly regularly, you may not see costs creeping up in things like your phone bill. Banking fees tend to sneak up, too.
4. Build an emergency fund. This is critical to minimize your debt! Things break and need repair. Unplanned expenses always come up and you’ve got to have cash on hand to handle them. In Proverbs 6:6-8 reads, “Go to the ant … consider her ways, and be wise. Without any chief, officer, or ruler, she prepares her bread in summer and gathers her food in harvest.”
5. Avoid or eliminate high interest debt. Use the “snowball method” to get rid of it quickly, paying off the smallest balance first, and so on.
6. Save for retirement. Save today for the future. Social Security won’t be enough to support you, so you have to put money in long term investments systematically.
7. Take advantage of employer matches. If your employer offers a 401k or 403b retirement plan with a matching contribution, squeeze every dime out of it you can. Contribute enough to maximize your employer's contribution because it’s free money. And if you don’t have a retirement plan at work, open your own IRA.
8. Don’t touch your retirement savings. Far too many people these days tap into their retirement funds to pay off debts or for other reasons that really aren’t emergencies. Let your retirement earnings grow.
9. Buy cars for transportation only, not status. As financial teacher Ron Blue puts it, “Don't’ drive yourself to the poor house!” Consider reliability and fuel efficiency when buying a car. The more reliable and the more fuel efficient a car is, the less it will cost you down the road (pun intended).
10. Remember to thank God for giving you everything you have! God is your provider. He’s promised to provide for your every need, and He will. Prayers of thanksgiving will help you learn to be content with His provision. Hebrews 13:5 tells us, “Keep your life free from love of money, and be content with what you have, for he has said, “I will never leave you nor forsake you.”
On today’s program, Rob also answers the following listener questions:
Is it wise to tap into the equity in your home?
When does it make sense to move money out of a 401k into an annuity?
Should you work part-time after retirement?
If you have questions about your own investments and retirement savings, Rob often suggests that you find a Certified Kingdom Advisor. Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to Questions@MoneyWise.org. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app.
