When we apply wisdom to our lives, our lives change for the better. No where is that truer than with money. Today on MoneyWise, financial author and teacher Ron Blue joins Ron West to reveal 6 life-changing bits of financial wisdom you need to know.
Ron Blue is founder ofKingdom Advisors.
6 LIFE-CHANGE PRINCIPLES FOR MONEY
This is THE foundational principle of managing money biblically. Psalm 24:1 is just one of many verses proclaiming God’s complete ownership. It reads, The earth is the Lord’s, and everything in it, the world, and all who live in it.
Most of the rest deal with the mechanics of managing money that anyone can follow, but Christians have to start with God’s ownership and understanding that we’re just stewards of what He entrusts to us.
Here we look to Proverbs 13:11, which tells us, Dishonest money dwindles away, but whoever gathers money little by little makes it grow.
If you can’t spend less than you earn, you can’t save for the future because there’s no money left to do it. You have to create margin in your finances or else you’re just living paycheck-to-paycheck, and eventually you’ll go into debt.
The Bible never says that borrowing is a sin, and there are times when borrowing makes financial sense, such as to expand a business or get an education.
But the Bible also never paints debt in a positive light and often warns against it.
Proverbs 22:7 puts it in a way that a lot of people don’t like to think about, but it’s true nonetheless. It reads, The rich rule over the poor, and the borrower is slave to the lender.
That’s a fancy financial advisor term for saving up an emergency fund.
Proverbs 6:6 through 8 reads, Go to the ant, you sluggard; consider its ways and be wise! It has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest.
And of course, we always advise having 3 to 6 months living expenses in your emergency fund in case of a job loss or some other financial calamity.
Ephesians 5:15 through 17 tells us, Look carefully then how you walk! Live purposefully and worthily and accurately, not as the unwise and witless, but as wise (sensible, intelligent people), making the very most of the time. Do not be vague and thoughtless and foolish, but understanding and firmly grasping what the will of the Lord is.
Setting long-term goals, like retirement or the kids’ education, will help you plan your investments.
If you’ve followed all the principles we’ve talked about, you’re very likely to prosper financially, so you can afford to be more generous.
II Corinthians 8:7 says But since you excel in everything in faith, in speech, in knowledge see that you also excel in this grace of giving.
LISTENER QUESTIONS On today’s program, Rob also answers listener questions: ●How do you determine how best to invest liquid cash funds? ●Should you prioritize putting additional funds in a 401k or in a health savings account? ●Is it best to take a lump sum pension or place funds in a 401k? ●Should you take cash out of retirement funds to buy a car or take a car loan? ●Is there a way to check for a lost U.S. Defense savings bond? RESOURCES MENTIONED ON THIS PROGRAM: ●TreausryDirect.gov
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