Upwards Church

It is not always a lack of money that creates financial pressure. Many times it is simply a matter of attitude. If there is a right attitude toward money, freedom from financial bondage can be assured. God did not say that money and material things were problems; money is neither good nor bad. It is the use of money and the attitude toward money that is the problem. Therefore, Jesus regularly warned His followers to guard their hearts against greed, ego, and pride, because Satan can control God’s people with these emotional tools. In the area of finances, God’s people are extremely vulnerable. As such, they need to be encouraged to follow the necessary steps that will ensure money management according to God’s plan, thus assuring financial freedom.

Transfer Ownership
God has designated the most difficult step, transfer of ownership, as the first step. Once this has been accomplished, all other steps will fall into place.¹

As believers, God expects that all possessions be transferred to Him. But since we can’t literally place everything into His hands, this transfer becomes an act of faith. In essence, it means accepting the fact that God owns it all. Transferring ownership to God means that God owns all that we consider ours: clothes, car, home, family, income, debts, present, and future. Once ownership is transferred, God can begin to lead out of debt and into financial freedom. We then become stewards and managers of what belongs to Him.

So, if God is the owner of everything in our life, He can be trusted to change unhealthy spending habits (especially the abuse of credit cards) that cause debt, anxiety, and fear of the future. The key to maintaining this relationship is to properly understand the definition of stewardship. A steward is someone who manages the property of another. As His stewards, we are responsible for managing His property in a way that will please Him.² God will not force His will on us, but if we realize our responsibility and transfer everything to Him, He will keep His promise and provide for each and every need. The first step in achieving financial freedom is to realize that since God is in complete control, all that we are, do, have or ever will have must be transferred to Him.

Get Out and Stay out of Debt
There are many ways to get into debt but only one sure way to get out and stay out of debt: self-discipline.

Regardless of income, disciplined debt elimination is mandatory in order for a money management plan that keeps Believers out of debt to function properly. Proverbs 27:12 says, “A prudent man sees evil and hides himself, the naive proceed and pay the penalty.”

Debt can best be eliminated by following these steps:

1. Transfer ownership of every possession to God (Psalms 8:6, Deuteronomy 5:32-33);
2. Allow no more debt, including bank and personal loans, and cut up all credit cards if unable to pay them off each month (Proverbs 24:3);
3. Develop a realistic balanced budget that will allow every creditor to receive as much as possible monthly (Proverbs 16:9);
4. Start retiring the debt (Psalms 37:21, Proverbs 3:27-28), beginning with the smallest debt first. Once the smallest is paid off, put all the money on the next, and so on. Generally speaking, if these steps are followed, the average family will be debt free in less than five years and the problem that caused the debt in the first place could very well have been corrected. ³

In order to stay out of debt, two steps need to be followed.

1. Develop a written plan of all expenditures in order of importance. Determine whether the expenditure or purchase is a need (basic necessities such as food, clothing, and housing), a want (things that make life easier, such as more expensive clothes, or a new tech device, or a desire (more expensive wants, such as designer clothes, a new car or a larger TV).
2. Open a savings account and get in the habit of putting something into the savings account regularly, perhaps every week or every month. The amount of deposit is not nearly as important as the consistency in making a deposit. This savings can then be used for specific purchases or emergencies, rather than making these purchases on credit.

Establish a Tithe
Every believer needs to give something back to God as a testimony to God’s ownership. A tithe is the portion of our income that we give to God and to God’s work. It should be the first part. “Honor the Lord from your wealth and from the first of all your produce” (Proverbs 3:9). Tithe means “tenth.” This is the amount most Believers use as a guide for tithing. It’s through sharing that God’s power in finances is brought into focus. “Now this I say, he who sows sparingly will also reap sparingly, and he who sows bountifully will also reap bountifully” (2 Corinthians 9:6). ⁵

Accept God’s provision
In order to maintain true financial peace, we must recognize and accept that God’s provision—all that He gives—is what He has provided to direct our lives. Many Believers are under the impression that God directs financially only by an abundance of money. This is not necessarily true. Sometimes He directs by withholding financial abundance As such, He expects His people to live on what He provides and not be pressured by the desire for riches and material possessions.

Put others first
Believers seeking financial freedom must always be willing to put other people first. “Be hospitable to one another without complaint. As each one has received a special gift, employ it in serving one another as good stewards of the manifold grace of God” (1 Peter 4:9-10). It is not God’s plan for us to get ahead in the world at the expense of another. Their welfare must be considered. “Do not neglect doing good and sharing, for with such sacrifices God is pleased” (Hebrews 13:16).

Avoid Indulgence
Unfortunately, most believers in America are self-indulgers, rarely passing up a want or desire, much less a need. To achieve financial freedom, indulgences and the tendency to spend more than what can be afforded on things that are not needed must be avoided.⁶ Indulgence is greed. “But immorality or any impurity or greed must not even be named among you, as is proper among saints” (Ephesians 5:3).

Avoid Snap Decisions
Avoid impulse spending, get-rich-quick schemes, and other financial decisions made through intimidation. “The plans of the diligent lead surely to advantage, but everyone who is hasty comes surely to poverty” (Proverbs 21:5). The best way to avoid these traps is to pray about each purchase, each financial decision, and each opportunity that is intended to produce extra income—especially if the decision will affect the family’s financial welfare. “Rest in the Lord and wait patiently for Him; do not fret because of him who prospers in his way, because of the man who carries out wicked schemes” (Psalm 37:7).⁷

Conclusion
Most believers have an upside-down view of money. They feel that the money they have is theirs and that God’s money is the portion that they give to the church. But God has a different view. As Lord, God, and King, He owns everything—including the money that we claim as our own. As such, He has clear ideas of how He wants His people to function and to make use of His possessions—ideas that result in financial freedom for His people, if they are followed step by step.

Sources:

1. Larry Burkett, Money Management for College Students, Moody, 1998, p. 28
2. Larry Burkett, “Giving and Tithing,” Christian Financial Concepts, 1999, p. 2
3. Larry Burkett, “Debt and Credit,” Christian Financial Concepts, 1999, pp. 6-8
4. Larry Burkett, Making Ends Meet, Christian Financial Concepts, 1997, pp. 15-16
5. Larry Burkett, Your Finances in Changing Times, Moody, 1975, pp. 119-120
6. Larry Burkett, Money Management for College Students, Moody, 1998, p. 30
7. Larry Burkett, Debt-Free Living, Moody, 1989, pp. 97-100

Special thanks to Nelson Searcy Coaching for helping me to develop this resource. You may check his web site at www.churchleaderinsight.com

Darrell

www.ridgefellowship.com

Money is neither good nor bad: it is merely a medium of exchange. It is the misuse and abuses of money that cause the problems. Because God is so good, He uses money and for our benefit in several different ways.

1. God uses money to strengthen our trust in Him. It is often through money that God can clearly and objectively show us that He is in total control, if we will trust Him and accept our positions as stewards and managers of His possessions (see Matthew 6:32-33).
2. God uses money to develop our trustworthiness. This principle is important because our lives generally revolve around making, spending, saving, and using money. If He can trust us with money, then He can trust us with greater responsibilities and His true riches (see Luke 16:11).
3. God uses money to prove His love. Scripture tells us that God assumes the responsibility of providing the basic necessities for everyone who trusts in Him (see Matthew 7:11). By transferring all money to Him, He many times uses money to meet those necessities of life.
4. God uses money to demonstrate His faithfulness. Moses reminded Israel that it was God who would give them the power to make wealth. Our security is in God, not our bank accounts. Discovering His faithfulness though financial needs encourages reliance on Him.
5. God uses money to unite Christ followers in blessings. God will use the abundance of one Christ follower to supply the needs of another. Surplus money in our lives has been given by God for the purpose of helping those who are in need.
6. God uses money to provide direction. There is probably no way God can direct our lives more meticulously than through the abundance or lack of money. Too often we believe God directs our lives through the abundance of money, but He also will lead us down His directed path by withholding money.
7. God uses money to cultivate self-control. One of the fruits of the Spirit is self-control, a key aspect of successful money management.
8. God uses money to clarify spiritual maturity. Many temptations clamor for a Christ followers’ attention. A great deal can be learned about our personal character and spiritual maturity by noticing how we handle money and determine financial priorities.

Areas in which God does not use money
Just like there are several ways in which God uses money for our benefit, there are several areas in which God never uses money to influence our lives.

1. God never uses money to worry us. If Christ followers are worried, frustrated, and upset about money, God is not in control. God said that wealth without worry is His plan for our lives. In addition, He promises to meet the needs of those who trust in Him (see Matthew 6:25).
2. God never uses money to corrupt us. Many Christ followers have fallen into Satan’s trap and are being corrupted. Christ followers whose financial life is characterized by greed, ego, deceit, and other worldly snares are at enmity with God and His plan.
3. God never uses money to build egos. Frequently, Christ followers are trapped by financial ego in that they use money in an attempt to build self-worth and ego. However, in Christ all are financially equal because all wealth will pass away. What will remain will be those things that have been laid up in heaven—the true wealth.
4. God never allows money to enable us to be wasteful. God does not expect His people to live in poverty; however, He also does not endorse lavishness. Surplus is provided so that God’s work can be funded and those in need can be helped. If the surplus is hoarded or wasted on lavishness rather than used for His plan and purpose, chances are the surplus will be removed.

Conclusion
God offers countless financial principles, intended to make our lives meaningful, because He’s interested in us and how we earn and spend money. Once we understand how God uses money and why He chooses to use it in a particular way, we generally become more familiar with His plans and purposes for our lives and are able to recognize and comprehend His directives.

1. Larry Burkett, Your Finances in Changing Times, Moody, 1975, p. 43
2. http://www.crosswalk.com/family/finances/559178.html
3. Larry Burkett, Your Finances in Changing Times, Moody, 1975, pp. 45-47

Special thanks to Nelson Searcy Coaching for helping me to develop this resource. You may check his web site at www.churchleaderinsight.com

Darrell

www.ridgefellowship.com

Top Ten List
Crown Financial Ministries has a practical Top Ten List of Things You Can Do to Find Financial Freedom.  

They are:

10. Build a budget—Figure out why there’s always more month left at the end of your money. Develop a monthly budget and make it your guide to financial freedom. “Commit your works to the Lord, and your plans will be established” (Proverbs 16:3).

Whatever you think your financial goals may be, you will not successfully achieve them without first understanding God’s financial principles found in the Bible. When you do understand, then develop lifestyle goals that reflect God’s principles and work out a written plan to do so. It’s called a budget, and will lead you to financial freedom.

9. Give it away—Set your priorities straight by first making some contributions. Give to God’s work; it’s His money anyway. Loosen up those purse strings; it will help loosen the grip money might have on your heart. “Be rich in good works, be generous and ready to share” (1 Timothy 6:18).

Don’t give in order to get. However, you’ll find that when you do give, God will provide you with more to give. “Let us not love in word or with tongue, but in deed and truth” (1 John 3:18).

8. Reduce your use—don’t use your credit card so much. Develop discipline in your spending habits. Take away any security you might be using in case of emergencies, like credit cards or other avenues of borrowing. If needed, cut up a few credit cards. Commit to go no further in debt and you will begin to reverse the process that produced your debt. “The rich rules over the poor, and the borrower becomes the lender’s slave” (Proverbs 22:7).

Remember that the problem is not credit cards but the misuse of credit cards.

7. Get a grip—Spending (especially for indulgences) doesn’t lift depression. In fact, after the initial rush it can make things worse. (Yes… like right after Christmas.) “He who loves pleasure will become a poor man; he who loves wine and oil will not become rich” (Proverbs 21:17).

It’s not the cost of an item that determines whether it’s an indulgence. However, its utility does. Do you really need it?

6. Look at your paycheck—Write the bottom-line number down, and then spend less than that. Personal savings rates are lower now than during the Great Depression. You can’t spend 104 to 112 percent of your income and continue to get away with it (despite what the government thinks). “I spoke to you in your prosperity; but you said, ‘I will not listen!’ This has been your practice from your youth, that you have not obeyed My voice” (Jeremiah 22:21).

Staying out of debt is no secret. Don’t spend more than you make, don’t borrow, and you’ll be on the road to financial freedom.

5. Cook a meal—Discover the kitchen occasionally and reduce the number of restaurant visits. Your spouse might enjoy meal preparation more at home if some help were provided (is that you?). “Poverty and shame will come to him who neglects discipline, but he who regards reproof will be honored” (Proverbs 13:18).

Almost everyone enjoys eating out occasionally. So make it part of your “entertainment” budget; but then stick to it. Save to eat at a nice place for special events rather than squandering it on fast food non-events.

4. Get in the car—Take a local vacation this year. Cancun may be calling you, but there are also interesting things to see and fun things to do within a day’s drive of where you live. “The mind of man plans his way, but the Lord directs his steps” (Proverbs 16:9).

People spend hundreds of dollars they can’t afford to travel thousands of miles to see things they might not remember next year. Has it occurred to you that people are doing just that as they come to visit areas within a three-hour drive of where you live? Go local this year. Use the road to Financial Freedom.

3. Don’t keep up with the Jones’s—They’re in debt, too (and you can be sure they won’t make your payments for you)! “Every labor and every skill which is done is the result of rivalry between a man and his neighbor. This too is vanity and striving after wind” (Ecclesiastes 4:4).

Envy is the desire to achieve based on the observation of other people’s successes. Don’t set your goals based on what others have. In the long run envy and covetousness will still leave you empty, because you’ll never have enough.

2. Keep the “ultimate driving machine”—You know…the one that’s paid for. Most people buy new cars because they don’t budget car-maintenance money for the car they own; when it breaks down they can’t afford to repair it. You may say, “But it’s zero money down!” But remember, those new car little- or no-money-down financial gimmicks require some budget-destroying payments. “Which one of you, when he wants to build a tower, does not first sit down and calculate the cost to see if he has enough to complete it?” (Luke 14:28).

Average monthly maintenance for most cars on the road (about seven years old) is about 5 percent of a family’s budget. If you compare a monthly 5 percent of your budget for maintenance on an older car to about 15 percent to buy a new car, it’s no contest. Poor gas mileage? Forget it! It takes lots of gas to make up the cost of payments.

And the number one thing you can do to find Financial Freedom:

1. Pray each day before you pay—Emotional and spiritual balance will lead to Financial Freedom. So ask God to guide you and give you strength to follow the first nine steps; they are expanded and explained further at our Web site crown.org. “In everything give thanks; for this is God’s will for you in Christ Jesus” (1 Thessalonians 5:18).

Don’t be resentful for what you don’t have. Instead be grateful for what God has provided. Financial Freedom will bring contentment; and contentment grows out of an attitude of gratitude.

“This slightly tongue-in-cheek list is nonetheless a serious introduction to principles and practices that can lead to greater balance in your life,” said Crown Financial Ministries co-CEO Howard Dayton.

Dayton said: “With an already heavy debt load and some ominous clouds on the economic horizon, many people will be looking for ways to get a handle on their finances. We not only want to provide hope to those who feel over their heads financially, but to also provide practical tools and resources to help them achieve financial freedom in their lives.”

Special thanks to Nelson Searcy Coaching for helping me to develop this resource. You may check his web site at www.churchleaderinsight.com

Darrell

www.ridgefellowship.com

When it comes to family debt, a common shortcoming is the lack of planning. The primary method in which families can identify shortcomings and to do something about correcting the effects of the shortcomings is to develop a family budget and stick to it.

Three Common Expenses that Lead to Debt:  

1.  Home Purchases
Nearly every family in America dreams of owning their own home. But many times they try to buy a home too soon after marriage or pay too much for a first home and end up in financial trouble. Unfortunately, quite often these families don’t realize that owning the home created their financial problems, because it took too large a portion of their spendable income. Because of this, inadvisable home purchases are the number one expense that leads to unmanageable debt.

The percentage of an average family’s budget that should be spent on a house payment is no more than 25 percent of Net Spendable Income (after tithes and taxes). Add to the mortgage payment the cost of insurance, utilities, maintenance, repairs, and telephone, and the percentage climbs to about 38 percent.5 Unfortunately, many couples commit to as much as 60 percent or more of their budget to housing. As such, there is no way that the family can handle that cost. If a family can afford to purchase a home within their budget (budget should be based on one income only, not on the combined incomes of husband and wife), that makes sense. But to destroy the budget just to get into a home is not logical.

2. Car Purchases
The second most common purchase that leads to debt is the purchase of a new car. Quite often couples who cannot qualify to buy a home buy a new car as a compromise. This is a major debt trap for couples, especially those who have a tendency to overspend, because they are generally not concerned with the overall price of the car—just the amount of the monthly payments.

A new car debt is actually harder to deal with than overspending on a home. In most areas of the country, homes can be resold at or above their original purchase price, because the market for used housing is consistently stronger than for new housing. But a family seeking to sell an almost new car to relieve debt is shocked to discover how little the car is worth on the open market. Most families owe more on a car that is one year old than its actual value. For families who can afford to do it, saving in order to purchase a good used car is a wiser decision than financing or purchasing a new car.

3. Scheduled Disasters
In order to plan a financial disaster, all a family has to do is fail to plan for predictable expenses that haven’t come due yet, such as automobile maintenance, emergency home repairs, or personal injury. Failure to plan for these is a major reason many families end up in unmanageable debt, because when the expenses occur they must be paid, so the only alternative available is often a credit card.

Why do people fail to anticipate these expenses that are inevitable? Generally because when they try to work them into their budget they don’t fit. So they simply ignore them until a crisis occurs. To do otherwise would require adjustments in the other areas of spending, such as housing, automobile expense, or recreation. Therefore, credit card debt invariably grows in order to absorb these non-budgeted, but predictable, expenses.

Two Common Errors That Lead to Debt:

1.  Allowing a Get-Rich-Quick Mentality to Govern Decisions
Symptoms of get-rich-quick mentality are evident in many of the investment schemes in the world today. Unfortunately, many Believers find themselves caught in the get-rich-quick trap before they realize what is actually happening.

If investments in get-rich-quick schemes were limited to available cash, most people would be far more cautious about losing it. But somehow it is easier to risk borrowed money because it seems to many Believers to be almost free money. Much like the same justification used when purchasing consumer goods on a credit card, it is easy to justify using borrowed money to invest, especially if the return is “guaranteed.” But speculating on the future not only is a practice in surety, which is warned against in the Bible, it also is presumptuous, because no one can rightly predict what will happen in the country’s financial markets over the next hour, much less the next few months or years. So, borrowing money in order to speculate on the future is both unwise and dangerous, placing the borrower in a position of potentially losing everything if the economy turns downward.

Another danger concerning get-rich-schemes is that most times investors know nothing or very little about the product, service, idea, system, or organization into which they are being solicited to invest. Believers are particularly vulnerable to being tricked by get-rich-quick schemes, because they tend to trust people who call themselves Believer, especially if they claim to have a special revelation or leading from God. So, stay with what you know and do not invest until you have completely and thoroughly investigated the product, program, or company. In addition, no decision should be made hastily. Always wait for at least one full day, and earnestly pray before making any investment decision.

2. Ignoring Your Spouse
It is very dangerous for a husband or wife to ignore the primary advisor that God has given them: their spouse. When there is a relationship as close as a husband and wife relationship, there will be problems. Since opposites tend to attract, they may not agree on a number of things and issues.4 But that’s okay as long as they communicate and try to reach a reasonable compromise. God’s Word is very specific when it comes to husband and wife relationships.

Husbands are to love their wives and listen to their advice before making any financial decisions that would change or affect the families’ financial state. Wives may give their advice, but the final decision is up to the husband. And whatever the decision, whether she agrees or not, she must respect him as the head of the family. God created husband and wife to function as a single working unit, each with different but essential abilities. Without the balance that each can bring to a marriage, great errors in judgment will most likely be made.

Conclusion
Without some kind of written financial plan (a budget) families will not realize that they have a financial problem until it overwhelms them. A budget balances income and expenses and reports on the status of income and expenses every month. By maintaining a strict budget couples can identify shortcomings in their family financial picture, and by working together they can capitalize on each others strengths in order to avoid errors and expenses that led to unmanageable debt.

Sources:

1. Larry Burkett, Debt-Free Living, Moody, 1989, pp. 97-102
2. Larry Burkett, Debt-Free Living, Moody, 1989, pp. 141-149
3. Larry Burkett, Biblical Principles Under Scrutiny, “ Avoiding Get-Rich-Quick,” Christian Financial Concepts, 1985
4. Larry Burkett, Money Before Marriage, Moody, 1996, pp. 27-28
5. Larry Burkett, The Complete Financial Guide for Young Couples, Victor, 1994, pp. 71-73
6. Larry Burkett, The Complete Guide to Managing Your Money, Inspirational, 1996, pp.492-493

Special thanks to Nelson Searcy Coaching for helping me to develop this resource. You may check his web site at www.churchleaderinsight.com

Darrell

www.ridgefellowship.com