If you don’t think you’re smart enough to handle money wisely, consider Proverbs 18:15, “The mind of the prudent acquires knowledge, And the ear of the wise seeks knowledge.” Being a good steward of God’s resources starts with simply wanting to be one.
If you don’t think you’re smart enough to handle money wisely, consider Proverbs 18:15, “The mind of the prudent acquires knowledge, And the ear of the wise seeks knowledge.” Today we have a few things you must know to be a good steward of God’s resources!
And our first lesson is what I like to call, “Don’t get bogged down in the little stuff.” A penny saved may be a penny earned, but a thousand dollars saved is a whole lot more.
Clipping coupons to save on groceries is great, but the point is not to let your quest to pinch pennies blind you to the bigger picture. If you set up your 401k 10 years ago and haven’t looked at it since, it’s time to rebalance your portfolio. Not doing that could cost you thousands.
Also, did you know that most people don’t shop around for their mortgage? The majority take the first offer they’re given. Getting multiple offers and then choosing the best could save you tens of thousands of dollars over the term of the loan. So don’t ignore the big stuff.
Proverbs 27:23 teaches, “Know well the condition of your flocks, and pay attention to your herds.”
The next lesson is, “Today counts more than tomorrow.” This one’s for procrastinators… who think that somehow saving or investing will be easier in the future, meaning they’ll have more money then. So they put off doing it today.
But the decision to delay your investing is based on a false assumption that you’ll have more money available in the years ahead. That usually doesn’t happen. Whatever challenges are preventing you from investing now will probably only get bigger in the future. For example, when someone gets a raise, they simply commit that extra money to another immediate desire, like a new car.
Proverbs 27:1 says, “Do not boast about tomorrow, for you do not know what a day may bring.”
Another reason today counts more than tomorrow is that money invested today has the benefit of time, and it takes time to realize the benefits of compound earnings. If you don’t invest today, your present is robbing your future.
The next thing you need to know to be a good steward is to “Prepare for the inevitable.” In other words, have an emergency fund. It’s for truly unexpected things like a job loss or a medical condition. It’s not for paying your taxes or renewing your vehicle registration. You should budget for those things outside of your emergency fund.
Proverbs 22:3 tells us, “The prudent see danger and take refuge, but the simple keep going and pay the penalty.”
Next is “Avoid doing too much too fast.” For example, sometimes people who got a late start investing feel they have to play “catch up.”
They may put too much in retirement savings and then realize they haven’t left enough for their living expenses. What they thought was discretionary income they could invest was really money needed to pay the mortgage or keep the lights on.
Or, they might make risky investments hoping for a bigger, faster gain. But successful investing requires patience. Proverbs 21:5 says, “Steady plodding brings prosperity; hasty speculation brings poverty.”
And our last lesson is “Don’t fool yourself about your spending.” You can’t get ahead unless you live on less than you earn … and you can’t do that unless you know where your money is going each month.
Many people are shocked to discover how quickly “little things” add up to a big number.
So it’s vital to track your spending. If you’re working up a budget, start by tracking all of your spending for at least a month. Two or three months would be better.
The free MoneyWise app will do that for you and give you three different ways to prepare a budget. One will be just right for you. Get it wherever you get your apps … just look for “MoneyWise, biblical finance.”
Only when you get an accurate picture of where your money’s going can you make wise decisions about where to cut so you can get to a place where you’re living on less than your income.
1 Corinthians 4:2 teaches, “ … it is required of stewards that they be found trustworthy.”
And that starts with being honest with yourself about spending.
On this program, Rob also answers listener questions:
What is the wisest way to approach Medicare “gap” insurance?
Should you tithe off of Social Security disability benefits?
Is it wise to borrow from a 401k to pay off debt?
Is it a good idea to buy a prepaid universal life insurance policy as an investment?
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.
