Introduction

The lesson from the story of Abraham, Isaac, Jacob, and Joseph is that God is firmly in the business of taking care of His children. God helps us to manage money successfully and stay on top of it. Every child of God has an economic inheritance. However, we need to be on top of our Biblical economics and act in obedience, so we receive His promised blessings.  God wants us to understand the basic principles of Biblical economics so we can succeed:

• But remember the LORD your God, for it is He who gives you the ability to produce wealth, and so confirms His covenant which He swore to our ancestors, as it is today.” Deuteronomy 8:18, NIV.
• “Let the LORD be magnified, which hath pleasure in the prosperity of his servant.” Psalm 35:27, KJV.

What is Financial Independence?

Financial Independence is when you can live the quality of life you desire without having to work any longer.” Anon.  This definition gives a Christian a bit of discomfort.   This is because reliance on God makes one a better Christian.  A Christian depends on the Holy Spirit for guidance, direction, and counsel as he or she walks through life.  A Christian must work, as Jesus says, “My father is always at his work to this very day, and I too am working.” (John 5:17, NIV). As Christians we have an economic inheritance: God wants us to succeed with money. Therefore, it is important to know what God says about finances; and act in obedience on what God says to receive the benefits (Hosea 4:6). We must not be ruled by myths and religious traditions.

The Three Traditional Phases of Life

These three phases of life are not linear but can be blended as we live our lives out. A student can work to augment his or her funds and an experienced retired professional can still work as a consultant and earn more income than during one’s working life.

Basic principles of financial Management

These financial principles are based on Biblical teaching.

God owns everything

• “Yours, LORD, is the greatness and the power and the glory and the majesty and the splendor, for everything in heaven and earth is yours. Yours is the Kingdom and you are exalted overall.” 1 Chronicles 29:11, NIV
• See also: Psalm 50:11, 12 and Psalm 24:1

We are Stewards

A steward manages someone else’s property on behalf of the owner (Matthew 25:14-30). We will be judged in terms of what we have done with all that God has given us.  A good steward increases wealth and multiplies resources on behalf of the master.  Stewards are required to be faithful (1 Corinthians 4:2)

OUR STEWARDSHIP RESPONSIBILITIES GO BEYOND OUR TITHES AND OFFFERINGS!

Have a plan of action

Planning is essential if we are to be good stewards and good givers. Planning helps us walk in our full economic potential.

• “A prudent man foresees the difficulties ahead and prepares for them; the simpleton goes blindly on and suffers the consequences.” (Proverbs 22:3 TLB)
• “An enterprise is built by wise planning, becomes strong through common sense, and profits wonderfully by keeping ahead of the facts.” (Proverbs 24:3 – 4 TLB).

Planning is simply “advance decision-making”. It involves having a vision of the desired future that one envisages, that is retirement. It involves setting goals to fulfil it and charting a path to get you there. It calls for sacrificial living so the recommendation is to consider living on seventy percent of your income.  There are simple strategies one can use to live on this seventy percent.

Start with expenditure control

This takes precedence over the generation of additional income. The 80-20 pareto principle states that eighty percent of consequences come from twenty percent of causes.  Using this principle, we can discover that eighty percent of our expenses come from twenty percent of the items we have. Focusing on the 80-20 item to manage our expenditure can make a difference. Our primary responsibility is to be faithful with what God has already entrusted to us! We should learn to make it grow.

• “For whoever has will be given more, and they will have in abundance. Whoever does not have, even what they have will be taken away from them.” (Matthew 25:29. NIV).

Financial sufficiency is not about more money. It is first about properly managing what we already have. Expenditure Control takes precedence over the generation of more income. A simple budget can help you tell your monies where to go.

Create a surplus

The first goal in breaking free of financial bondage is to create a surplus.

• “Dishonest money dwindles away, but whoever gathers money little by little makes it grow” Proverbs 13:11

Think in terms of managing one hundred percent of your income, and not ten percent. Consider these two statements: “Income minus Savings = Expenses”, and “Income minus Expenses = Savings.”

Some practical ways of creating a surplus

• Pay yourself
• Consider forced savings
• Consider saving windfalls
• Do not stop making instalment payments
• Adjust your lifestyle

Beware of debt

In the Old Testament debt is a curse (Deuteronomy 28:15, 43 – 44). Debt makes a presumption on the future, not only that you will have the money to pay but that you will be alive to pay.  Debt usually is not the problem; but a symptom of the problem – greed or lack of planning.  Remember that Surety is a subtle form of debt. The Bible discourages it! (Proverbs 22:26; Prov. 17:18; Prov.11:15; Prov. 6:1 – 5). Debt can make you a slave and take away your Christian witness.

To get out of debt

• Ask God to break the power.
• Shun credit.
• Start a debt-reduction plan.