Our 5 Financial Principles
These are five basic financial principles that Nancy & I put in place many years ago. During those uncertain times we considered the scriptures & learned from others. Today there is an abundance of information available for you to consider. We can’t say we have not had financial challenges, But our experience has been that God’s principles work.
Principle 1: Tithe from the gross, God will do more with 90% than you can do with 100%. The principal & practice of giving first fruits also settles the matter. Giving first is much easier than trying to decide how much at the end. Avoid the temptation to wonder what the tithe amount over time could have bought.
Principle 2: Savings. Part of Gods provision for you today can be for tomorrow.
Saving 5% minimum in long-term savings is not hoarding in fear of the future, but harvesting in season.
We were able to take advantage of (401k, IRA, & company matching plan). Increasing our house payments when we received promotions or raises, proved to be a good long term savings plan. A paid off house brings a lot of financial security & flexibility. You do have choices for legal & good conscience investments. Remember If an investment seems too good to be true, it is.
Principle 3: Avoid debt. PERIOD.
Debt, not in itself evil, can be a robber. It’s always easier to get than to pay, & it leaves you in bondage. However, sometimes it may be necessary (house, car) resist borrowing more than you need, and pay it off as soon as possible.
Don’t even own a credit card if you can avoid it. I had one only for company travel. It is a fact that people over spend with cards, cash still works fine! Evan using a debit card will help keep you from spending money you don’t have. Many people pay the bank more in credit card interest than they tithe or save.
Principle 4: Budgeting
Budgeting lets you see what you are doing with Gods provision. We need a line of sight to our spending patterns. Helps build discipline to manage desires & avoid the grief of the unexpected. This may become less necessary as you develop a solid lifestyle pattern. If you use a debit card you should have a clear trail to work with.
Principle 5: Lifestyle must fit your means
Basically we have found that our lifestyle needs to fit into about 80% of what we bring home. This includes blessing others/gifts. For sure there is tension in determining how much is enough. Remembering that we are stewards of what belongs to God is helpful. His word gives us many lifestyle guidelines. We have found that simplicity & generosity are more peaceful & satisfying than the stress that accompanies overconsumption.
