MONEY TIPS FROM THE BIBLE
1. Have a financial plan
Proverbs 21:5 The plans of the diligent lead to profit as surely as haste leads to poverty
If you don’t have a plan, you will move through a life earning and spending without plan for the future.
Here are simple steps to take to develop a plan
a.) Identify your goal b.) Evaluate your financial situation c.) Write out steps to take to achieve your goals
2. Create a budget.
Luke 14:28 Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it ?
You can use the 50/30/20 budget rule to maximise your money. 50% on necessities, 30% or less on wants, 20% on savings. Investment and Debt if any. You can adjust the % to suit your money goal.
3. Avoid debt.
Proverbs 22:7 The rich rule over the poor, and the borrower is slave to the lender.
The Bible doesn’t strictly prohibit debt, but it does characterise debt as a form of bondage. There is correlation between overspending, too much debt and low savings rate.
4. Create Savings Culture
Proverbs 21:20 Wise people live in wealth and luxury but stupid people spend their money as fast as they get it.
Wealth creation is not rocket 🚀 science, not saving money is not good for your financial health.
5. Set Priorities
Proverbs 24: 27 Put your outdoor work in order and get your fields ready after that, build your house.
We all have certain basic needs that we have to meet in order to survive. Make sure you save enough to cover the essentials before spending money on creating comforts.
6. Build an Emergency Fund
Genesis 41:34-36 Let Pharaoh appoint over the land to take fifth of the harvest of Egypt during the seven years of abundance.
It ensures that it you lose your job or an emergency occurs you can afford to pay for some things without going into debt.
7. Diversify your investments
Ecclesiastes 11:2 Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land.
If you are financially able to invest, it is safe to diversify to reduce the risk of losing everything.
8. Reduce risk as you age
Ecclesiastes 5:13-14 I have seen a grievous evil under the sun. Wealth hoarded to the harm of it’s owner, or wealth lost through some misfortune so that when they have children there is nothing left for them to inherit .
If you want to be sure you have enough to retire on something to leave to your kids when you’ve gone you need to reduce your investment risk as you age.