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Biblical
Basics for Financial Growth
Money, like it or not, is a part of life in today's society.
How you view it and what you do with it makes all the difference
in the world. Here is an outline that Jim has used in speaking
on this important subject:
1. Examine your Spiritual and Mental Condition.
Your attitude toward wealth is important – and it’s
the place to start.
(a) The love of money is a root of all kinds of evil.
- Does this mean that money is evil?
- What are some examples of evil that finds its “root” in
the love of money?
- How do you think that these pitfalls can be avoided?
(b) Money is a token of work, effort and value given.
- Don’t expect it to come out of “thin air”.
- Don’t get drawn into “get rich quick” schemes.
- Growth requires wisdom, time and effort.
(c) Money is not the only measure of wealth.
- Biblical times: cattle, servants.
- Today: not so much coins and notes, but more so, property
and ownership of assets which generate income, such as shares
in a company.
- But there are also items which rank even higher:
- Family, friends, home in heaven
(d) Do you want to be a “battler” or a “biblical
investor”?
| The Battler |
The Biblical Investor |
| Life is a “merry-go-round” |
Life is a journey of growth |
| Cash flow is a drain pipe |
Cash flow is planned and disciplined |
| Investments are for tomorrow |
Investments are opportunities now |
| Wealth is viewed as either evil or unattainable. |
Wealth is seen as a gift of grace from God to be used for
His glory. |
| Poverty eliminates generosity |
Wealth enables generosity |
| Motivated by fear – risk is avoided, and so is growth |
Motivated by faith – risk is managed, and growth
is sought after |
| Faith is directed towards self and is found lacking |
Faith is directed towards God, and He is never failing |
2. Become a Biblical Investor
(a) Learn your lessons early.
- Disciplined spending.
- Planned saving.
- Faithful giving.
(b) Consider using a family budget
- How do you know if you need one?
- How do you get started?
- Determine the categories of income and expense.
- Record expenditure for three months.
- Use the results as the basis for your budget.
- Make adjustments based on anticipated events and observed “blow-outs”.
- Update it after six and twelve months.
(c) Establish family financial policy
- This may or may not be written, but it certainly must be
clearly understood.
- It is a matter of mutual submission – we need each
other to keep us accountable.
- Authorised expenditures for each family member.
- Budgeted expenditure for which you are responsible.
- Discretionary spending up to a certain monthly amount.
- Special needs to be discussed, with a “time lock” in
place.
- Such matters need to be discussed and agreed upon, not dictated.
- Define an “emergency” for which immediate decisions
could be made.
- Establish a policy for the use of savings.
- You may want to have a variety of savings accounts for different
purposes: emergency, investment, special family events & needs.
(d) Adopt an investment strategy.
An example:
| Target date |
Goal |
| June 2004 |
Save and invest to acquire $40,000 for a deposit on a home.
Buy a home.
Keep looking up – the Lord may come! |
| June 2007 |
Generate $90,000 in equity through extra home loan payments.
Generate $10,000 in equity in managed funds.
Invest $50,000 in property or shares with appropriate gearing.
What to invest in to be determined by current market conditions
as well as personal situation (including level of income, tax, etc.).
Don’t forget that God wants me to serve Him and use all I have
to bring glory to His name NOW! |
| June 2010 |
Invest in a major investment property ($500,000 plus) in
a capital
city close to the CBD, and in a market sector ready to achieve
significant growth. |
| June 2030 |
Retire with an income of $50,000 in today’s dollars.
Use my time
to serve God without having to be paid! |
Note: The example above is for illustration only. Do not
assume that the investments used in this example would be suitable
in your situation. Make an appointment with a financial planner
to get advice which considers your entire set of circumstances,
needs and goals.
(e) At least once per year, track your progress.
(f) Study and apply biblical investment principles.
- There are a host of principles related to sowing and reaping.
Think about it. Gal. 6:7-9 and many other passages.
- Study the parable of the talents, Matt. 25.
- Keep it all in perspective with Matthew 6.
- Relate it to a biblical work ethic: John 5:17; 1 Thes. 4:11;
2 Thes. 3:10-12.
- Keep in mind that God has purposes for the generation of
wealth: Prov. 3:9, 10; 2 Cor. 8, 9.
- Relate investing to other aspects of the Christian life such
as evangelism and discipleship.
Jim Massey,
www.bizlife.com.au
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