Bringing Order to your Financial House
By: Gordon Oosting
Published:
Aug 1st, 2007
The Bible has a lot to say about money. Here are seven points from the Bible to help put yours in order.
Scripture has a wealth of information concerning money and possessions and it gives us a tremendous amount of insight on how to put our financial house in order. While “Faith” and “Prayer” are mentioned 500 times in scripture, money and possessions are mentioned 2300 times. The importance of handling money is set forth in Luke 16:11 – “Therefore if you have not been faithful in the unrighteous mammon (money), who will commit to your trust the true riches”? The Lord expects us to be faithful in the use of our money, because how we handle our money really gives a picture of what is going on in our hearts.
With all the emphasis that scripture places on money and our use of it, I am always amazed at how many people go through life with no plan for the use of their money concerning spending, giving, saving or controlling their money.
Without a plan, it is impossible to have your financial house in order. No carpenter would attempt to build a house without a blue print or plan. No traveler would set out on a journey without maps and a plan. Proverbs 21:5 says that “The plans of the diligent lead surely to plenty, but those of everyone who is hasty, surely to poverty”.
A “plan” that will cause you to be counted as “diligent”, and will surely lead you to plenty, consists of seven steps.
Seven Steps to Financial Freedom
#1 – Acknowledge God’s Ownership
The first step to financial freedom is the most difficult step for most Christians to take. It is the acknowledgement that everything belongs to God and we are the stewards or managers of what he has supplied. I Chronicles 29:11-12 states this principle most clearly: “Everything in the heavens and earth is yours, O Lord, and this is your kingdom. We adore you as being in control of everything. Riches and honor come from you alone, and you are the ruler of all mankind; your hand controls power and might and it is at your discretion that men are made great and given strength”.
No one can achieve true financial freedom until God is acknowledged as the rightful owner of all our possessions and finances. Once this decision is established in our hearts, the remaining steps become relatively easy.
#2 – Establish a Budget
Many people have a negative connotation of the word “Budget”. However, the fact is that a budget is a critical step in obtaining financial freedom. It controls overspending and establishes a plan of telling your money where to go rather than asking where it went. It can bring harmony and communication into your marriage and can relieve the stress of debt and financial pressures.
A budget simply measures your monthly income and expenses and insures that you spend less than you make.
In reality, a budget is a short term tool to achieve your long term goals. Proverbs 16:3 says “Commit your works to the Lord, and your plans will be established”. Follow God’s financial principles, and your plan or budget will be successful.
#3 – Keep Giving & Saving at the Top
Most people have their budgets turned upside down with giving and saving at the bottom of the list. To be successful, however, giving and saving have to be at the top of the list, or else we spend all of our money on the multitude of things that present themselves.
Giving should be the very first thing we do with our income. Proverbs 3:9 says “Honor the Lord with your possessions and with the First Fruits of your increase”. In scripture, the word “tithe” actually means the first tenth. By giving and loosening our grip on money, it will loosen the grip that money can have on your heart. “Be rich in good works --- be generous and ready to share” (I Timothy 6:18).
The second budget step has to be saving or paying ourselves. It is reported that 70% of Americans live paycheck to paycheck and do not have enough in savings to survive for 60 days if they were to loose their regular income.
A good goal is to save 10% of your income. Saving $400 per month (10% of a $50,000 annual income) will build a nest egg of $2,500,000 over a 40 year working career. The key is to get started now or you will never achieve the financial freedom that is available.
#4 – Get Out of Debt ASAP!
There are two verses that should encourage you to become debt free as soon as possible. Proverbs 22:7 says that “The borrower is servant to the lender” and I Cor. 7:2 says “You were bought with a price, therefore do not become slaves of men”.
Debt is dangerous because it tempts us to rob God to pay our creditors. Also, statistics show that 75% of all divorces list money problems and debt as a major factor in the divorce.
The fastest way to get out of debt is to commit to no new debt in your future and attack your existing debt as aggressively as possible and you will be well on your way to financial freedom.
#5 – Avoid indulgence and Hasty Decisions
Americans are prone to indulging in whatever wants, needs, or desires are set in front of them. However, over-indulgence is a sure sign of greed and in Luke 12:15 Jesus warns “Beware and be on your guard against every form of greed; for not even when one has abundance does his life consist of his possessions”.
Hasty decisions are also often motivated by greed. Proverbs 21:5 says “The plans of the diligent lead surely to advantage, but everyone who is hasty comes surely to poverty”. Patience and self-discipline, rather than greed and instant success, are the ways to financial freedom.
#6 – Establish Goals
Without sound financial goals, our lives end up as “wandering generalities” rather than being lived according to God’s plan. Habakkuk 2:2 says “write the vision in clear letters on a tablet, so that a runner can read it and tell everyone else”.
A budget is the short term tool to reach our long term goals. Long term financial goals should be in writing and should include items such as Giving & Savings, Debt Repayment, Educational Goals, Lifestyle Goals, Retirement Goals, etc.
Prayerfully writing and developing our goals is a sure step towards financial freedom.
#7 – Learn Contentment
In Philippians 4:11, Paul says “Not that I speak from want; for I have learned to be content….”. Contentment isn’t something that comes to us naturally. It must be learned. Contentment with what God has provided will eliminate all the negative aspects of greed, envy, jealousy and pride from our hearts. When we are content, we can be at peace with God. “And let the peace of God rule in your hearts”. (Colossians 3:15).
Follow the above seven steps, let the peace of God rule your heart, and He will lead you into financial freedom.
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About the author
Gordon Oosting has been in the banking industry as a commercial lender for 25 years. He is currently a senior vice president at Mercantile Bank of
To learn more detail concerning the seven steps to Financial Freedom, check the ResLife bulletin for information on the Finance Class beginning in September, 2007.
Scripture references in this article are from the New King James Version.
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