Many see the Bible as a source of inspiration, comfort or instruction even in the personal finance space because of the many lessons on money.
The central theme of the Bible is Jesus, and the Holy Spirit inspired the writings. “Every Scripture is given by God’s inspiration and it’s profitable for instruction……..”2 Timothy 3:16
While most of us will readily read other books blogs and materials to help us manage our finances, the Bible also carries amazing insight to managing our finances the way God wants it
The Bible is not like other books in its ideas, instructions and purpose, even though it was written years ago, its timeless lessons on money including debts, savings, budget and investments is still very relevant today
“Is there anyone here who, planning to build a new house, doesn’t first sit down and figure the cost so you’ll know if you can complete it?” Luke 14:28-30 MSG
Every goal and action has a cost to it, some of those costs will be financial. There is a cost to buying a house, car, giving and the Bible thinks it’s wise to plan and figure out our cost or expenses and this a what a budget does for, it’s planning
Make a budget today using any tool you are comfy with, figure out what your income is and determine your expenses in the immediate future, median and long term. Check out our step by step guide to budgeting
If you already have a budget and it doesn’t seem to be working check out the reasons why
So pay everyone what you owe them. Pay the taxes you owe, pay the duties you are charged, give respect to those you should respect, and honor those you should honor. Romans 13:7 CEB
Debt can feel suffocating and in most cases look like there is no hope but there is. The first step is to determine in your heart to pay, the journey will be challenging but stay the course.
The Bible advises us also to pay our debts and obligations whether it’s taxes, credit cards, loans or a combination of all.
The next step is to plan your minimum payments into your monthly budget as a necessity just as we treat our housing and food.
There are different approaches to paying debt (read about them here), select what is best for you and be consistent. We glorify God when we do. The Bible also says “debt makes you a slave to the lender“, a better approach and mindset during and after this journey is to avoid debt completely.
“And do not forget to do good and to share with others, for with such sacrifices God is pleased.” Hebrews 13:16 NIV
At the heart of Christianity you find giving, so it’s not a surprise this rich attitude is expected in our finances
Jesus himself “It is more blessed to give than to receive.”
We are to be intentional – make it a constant part of your budget, retirement planning and spending
We are also to do it cheerfully, generously and with love
Christian giving is a response to the ultimate giver
The wise store up choice food and olive oil, but fools gulp theirs down. Proverbs 21:20 NIV
The foundation of building wealth is spending less than you earn, save and invest the difference
The larger your savings rate the faster you achieve your goals
But divide your investments among many places, for you do not know what risks might lie ahead. Ecclesiastes 11:2 NLT
From this scripture it’s clear why it makes sense to diversify your investments. Nearly any type of investment can fall victim to a bad turn. We don’t have a crystal ball to tell the future of a particular investment or investment in an industry. So it makes sense to put money into many different types of investments so that a single disaster can’t cost you everything you have. Diversification reduces our risk
How do I diversify my investment? Index funds. It’s a simple, cheap, diversified and smart way to invest. As a family the bulk of our investment is in index funds.
We use vanguard UK which is awesome but you can find others especially if vanguard isn’t available in your location
Why index funds? Checkout this in depth blog post
“A good person leaves an inheritance for their children’s children, but a sinner’s wealth is stored up for the righteous.” Proverbs 13:22 NIV
The moment we realise that our actions or inactions doesn’t end with us, it will change our outlook to life
Inheritance isn’t just money but life lessons, even things usually overlooked like kindness and compassion
Abraham is an example of thinking legacy, he left all to his son Isaac, another example is Timothy’s grandmother
We leave an inheritance by our words and actions
“How could you worship two gods at the same time? You will have to hate one and love the other, or be devoted to one and despise the other. You can’t worship the true God while enslaved to the god of money!” Matthew 6:24 TPT
Trusting in riches or wealth is wrong. Serving Money and not God is wrong. Greed is absolutely wrong. But can we enjoy both God and the riches of this world? We can if we do things God’s way.
"Instead, desire first and foremost God’s kingdom and God’s righteousness, and all these things will be given to you as well." Matthew 6:33 CEB
The Bible contains a lot more passages that can help you manage your finances – you can support yourself, care for your family, reach your goals and help those in need.
Money is just useful tool and as such should be controlled – you shouldn’t let it control you. Rather than obsessing about how much money you have and how you can make more, take some time to be grateful for what you already have.
