Biblical Financial Principles

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..\Documents and

Jim Sutherland, Ph.D., Director

   Are you financially free or in bondage?
   Do you give generously?
   Do your assets exceed your liabilities ?
   Do you have a short-term financial plan ?
   Do you have a long-term financial plan ?
   Do you honor God with your giving ?
   Are you saving regularly?
   Do you have adequate insurance and
    a will ?
 The Master or the MasterCard ?

 Contentment
 The Real Owner?
 Family Finances
 Giving & Receiving
 The Lowdown on Debt
 Short-term Planning—The Budget
 Long-range Planning--Savings
 Fundamentals of Investing
•   51% of African Americans are ―personally
    struggling with finances‖ (Barna, 2001).
•   Is the Bible able to advise us into the
    second millennium ?
•   Will we trust the Bible when we disagree
    with it ?
•   There are many ―experts‖--who will you
    believe ?
   What do we commit to
    God ?
          6:33; Mark 12:30;
     Matt.
      Rom. 12:1-2; Col. 1:16
   The Macedonian example
    (2 Cor. 8:1-5)
     Few  resources, first
      commitment, giving (9:8-
      11), grace
   Does my spending reflect
    trust in God ?
• There are two masters—Luke
  • The “Rich Young Ruler”
    illustrates—Luke 18:18-23
  • $ is stronger than blood and
    friendship—Prov. 19:7
  • Money offers pleasure, prestige,
  • We can’t love God and the world—1
    John 2:15; Demas tried--2 Tim.
 • Honestly, do you want to be rich?
 • If we “go for the gold” & choose
   money and affluence as Master
    • Temptation, traps, grief,
      destruction—1 Tim. 6:9-10
    • Dissatisfaction—Ecclesiastes
    • Chokes the Word of God—
      Matthew 13:22
    • Riches take wings—Prov. 23:4-5
     Where Is Your
• Are we trying to build heaven
  on earth?
• We cannot manipulate God by
  giving, or by praise or by
  claiming something. God is
  too smart for that.
• Beware of greedy teachers
  who exploit you with false
  words (2 Pet. 2:3). If some
  really believed in “seed
  money,” they would send you
  the money.
Where Is Your Treasure?
   • The “prosperity gospel” preaches
     materialism and greed in the name
     of super-spirituality.
   • Some teach that Jesus was rich,
     “justifying” a Rolls Royce.
   • According to the NT, riches are
     instead a spiritual liability, making it
     harder to enter heaven (Matt: 19:23-
     24). Riches tend to choke the Word
     of God (Matt. 13:22).
The Creator and The Creation
      Material riches are not to be our goal, but things
       material are not evil in themselves. The good
       God created very good things out of matter—
       stars and people and butterflies and whales
       (Gen. 1:31).
         The focus is to be on the Creator, instead of upon His
             Matthew 6:21 ―For where your treasure is, there
              your heart will be also.‖ NIV
             If God is our treasure, He can entrust to us the good things
              of His creation, knowing that they will not become idols—i.e.
              become more important to us than is God.
         Psalm 37:4 “Delight yourself in the LORD and he
          will give you the desires of your heart.‖ See also Ps.
          16:11; 84:11b; Rom. 8:32. The more we love God,
          the more He is free to bless us, and I suspect we
          place less and less intrinsic value upon those gifts.
Wealth and Christians
 God blessed Abraham, Job, David, Solomon,
  Hezekiah, etc. with much wealth (Gen. 24:35; Job 1:3; I
  Chron. 29:3-5; 2 Chron. 1:12; 2 Chron. 32:27)

 The fact that stealing remains a sin (Rom.
  13:9) implies that private property is
  approved by God.
 The “rich” (us) are not told to divest of
  wealth, but to be richly generous (1 Tim.
  6:18). If you make $10,000/year you are
  among the upper 9% of the worlds affluent.
      From the World Christian Encyclopedia, David
  Barrett, George Kurian, Todd Johnson, Eds. 2001, p.
Riches are deceitful. It remains harder for the
  rich to enter heaven—Matt. 19:23.
 Real Prosperity:
 Prosperity is:
    Your name written in heaven, Lk.10:20
 Contentment, with godliness, 1 Tim. 6:6
    Without contentment, you’ll never have
    God meeting ALL your needs, Phil. 4:19
       How much more do you need?
    Proverbs 30:7-9 "Two things I ask of you, O
     LORD; do not refuse me before I die: 8 Keep
     falsehood and lies far from me; give me
     neither poverty nor riches, but give me only
     my daily bread. 9 Otherwise, I may have too
     much and disown you and say, 'Who is the
     LORD?' Or I may become poor and steal, and
     so dishonor the name of my God.         12
 Real Prosperity:
 Prosperity is:
   Having all the funds you need to
    accomplish all the work that God has
    given you to do in life, Eph. 2:10
      Preparation and ministry cost money.
   Having the world--all things are the
    Christian’s (1 Cor. 3:21-23; Rom.
    4:13—JRW Stott).

    If you go for the crown and the Lord
        All your basic needs will be met—Matt.
         6:25-34 (sometimes these will be met by
         others, James 2:14-17).
        All other needs will be met—Phil. 4:19,
         Rom. 8:32
           Can you buy a policy that meets ALL your
        We’ll have enough to share
        Our lives will find balance between work
         and rest—Eccles. 4:5-8.

    Is my trust in my Master or in my
       MasterCard®?                              14
• If your security is in wealth,
  you will never have enough
  wealth to be fully secure. A
  man who has given away over
  11 million dollars freely
  admits this, since wealth is
  quickly lost.
• God is enough. When you
  have Him, you are secure no
  matter what happens
 Are you content right now ? 1 Tim. 6:6
   Debt often indicates lack of
 What are the minimums? 1 Tim. 6:8
 Will Christians always have them? (2
  Cor. 11:27; Matt. 8:20; 2 Pet. 1:3).
  How was Paul content? Phil. 4:13
 What would it take to make you
  content, if you’re not ?
 What is abundant life? (John 10:10)
Life = possessions? Luke 12:15
Life = Christ? Colossians 3:4
Loss = despair? Job 1:20-21; Hab. 3:16

• Advertisements-- $850 @ American in
• Materialism & the shopping mall temple
   • Giving fights materialism
• The prosperity of the wicked—Psalm 73:3-
• The prosperity of other believers—Acts
• Is God enough right now? Psalm 73:25
          WHO IS THE OWNER ?

•   YOU ? THE BANK ? GOD ?
•   What does God claim? Ps. 24:1; 50:10-12;
    Haggai 2:8
•   Where do you go when you need $ ?
    •   Ask, Seek, Knock—Matt. 7:7-11; Ps. 50:14-15
•   How does God meet needs?
    •   God ―burdens‖ folks to desire to give—2 Cor.
    •    8:5,16; Jews, 1 Chron. 29:8-14
•   How can I admit God’s ownership?
• Should a wife or mother work outside the
• Adam provided—Gen. 3:17-19
  • Male provision for the wife illustrated in
  • 1 Tim. 5:8; Hos. 2:2-9; Ezek. 16:8-13
• The wife assists her husband—Gen.
     2:18, doing him good—Prov. 18:22
• She raises the children and manages the
  home—1 Tim. 5:14; Titus 2:3-5
  • God wants “godly” offspring—Malachi 2:15
  • The Prov. 31 lady met family needs and was
    a businesswoman (vs. 16, 24)
  • An empty nest may require new challenges
    for a wife.
                       FAMILY FINANCES

If a mother of young children works to
 increase the standard of living, she may
 gain little net increase.
She may end up with work both at home
 and the office.
Daycare means someone else raises the
 child and extra sickness (1-2 year-olds,
  13 million children are in daycare in the US and
   2/3 of mothers with children under 6 are
   working (Katha Pollitt, “Happy Mother’s Day,” The Nation, 5/28/01)

• The Institute for Social and Economic
  Research (British) found that “Married men
  earn more than single men, but only if their
  wife stays home—and does all the chores.”
• Sociologists Vincent Duindam and Ed
  Spruijt of Utrecht Univ. found that “the
  more hours the mother works, the worse
  the father’s physical and mental health.”
 “Housewives make their men healthy and wealthy” 6/30/05

• 55% of mothers with children under 1
  worked or were looking for work in 2000,
  down from 66% in 1998. (USA Today, Stephanie Armour,
  “More moms make kids their career of choice” 3-12-02)
• A separate income may promote an
  independent spirit in the wife and divorce.
  33% of married Christians (and 34% of non-
  Christians) divorce (Barna 8/6/01). A job may be
  seen as an “insurance policy” against it.
• Sometimes wives and singles must work.
   • Divorce, death, out-of-wedlock pregnancy and
     desertion may force a mother to work.
                       How much?
• Should a Christian tithe because mandated in
  the Old Covenant? (Gal. 3:10; James 2:10; Heb.
• Generosity is commanded of the rich (us) in the
  NT (1 Tim. 6:18)
• The Law of receiving and giving (1 Cor. 16:2;
  2 Cor. 9:6; Eccles. 11:1; Prov. 11:24-25).
• Attitude is crucial—why do I give?
   • For love (I Cor. 13:3), cheerfully (2 Cor. 9:7;
     8:1) and secretly (Matt. 6:1-4)?
   • Give to receive ? To buy God off (Amos 2:6-
     8; 4:1-5, 12) ?                             24
                                      How much?
• Christians are to give an unspecified percentage of
  our increase to God, but we give proportionately to
  our receiving.
   • 1 Cor. 16:2 2 On the first day of every week, each one of
     you should set aside a sum of money in keeping with his
     income, saving it up, so that when I come no collections
     will have to be made).
• We receive proportionately to our giving. Giving
  7%, for example, is not a sin. The Spirit will lead
   • However, a tithe is the least that God has asked His people to give (Larry
     Burkett). A tithe was given before the Law (Gen. 14:18-20); and was
     commanded in the Mosaic law (Lev. 27:30).
                              How much?

• Generosity is commanded of the rich in the NT (1 Tim.
• The Law of receiving and giving governs our giving (1
  Cor. 16:2; 2 Cor. 9:6; Eccles. 11:1; Prov. 11:24-25).
• Attitude is crucial—why do I give?
   • For love (I Cor. 13:3), cheerfully (2 Cor. 9:7; 8:1) and
     secretly (Matt. 6:1-4) ?
   • Do I give to receive ? To buy God off (Amos 2:6-8;
     4:1-5, 12) ?
• Can we first give to God ? (Rom. 11:35-36)
• What part does God request ? (Prov. 3:9)
• How much should Christians give ?
   • Should we tithe ? Only 3% of born-again Christians
     tithed in 2002—down from 8% in 2001 (Barna 5/19/03).
     In 2001 16% gave nothing to the church (Barna 5-21-01).
     Globally Christians give 2% of personal income to
     Christian causes, while in the US it is about 2-3%.
     (Barrett & Johnson, Int’l Bulletin of Missionary
     Research, 1/03, p. 25)
   • A tithe was given before the Law (Gen. 14:18-20); and
     was commanded in the Mosaic law (Lev. 27:30).

 Don’t give due to being pressured (2 Cor. 9:7) via
  phone, mail, or solicitations from friends. Ask for
  time to pray for guidance. Many ministries use the
  most effective marketing techniques to generate
  income. Because someone found you does not
  mean that you are to give. Some have very high
  overhead (fireman’s charity concert).
 A need does not necessarily mean that you
  should meet it, just as a ministry opportunity does
  not necessarily mean that you should engage it.
  We are to walk by the Spirit, and keep seeking
  God’s wisdom (Gal. 5:25; Prov. 3:5-6).


 Should all giving go to the church?
  Is the staff adequately paid? (1 Cor. 9:7-
    14, 1 Tim. 5:17-18, Gal. 6:6)
  Are the truly needy supported—
    believers and unbelievers? (Jas. 2:15-17;
    Gal. 6:10)
  Are missions advanced? (Matt. 28-19-
    20; 3 John 1:5-8)
  Is the property maintained? (Haggai 1:7-

• Guidelines for giving outside the church
  • Whose kingdom is glorified? (1 Cor. 10:31)
  • What percentage is spent on administration?
     • Check for organizations
       giving 60% + to programs and for evaluations
       of charities. See
  • Form 990 can be obtained from Guidestar for
    many not-for-profits at
  • Follow the burdens (work) God gives
    specifically to you (Eph. 2:10). Only God can
    meet all needs.
                   6 LEVELS OF GIVING
1. Giving little or nothing. Among Baby-
  busters (18-35), only half gave anything to
  the church in 2002.1
2. Inadequate giving. Giving less than 10%.
3. Obedient giving. Giving a tithe.
4. Giving beyond obedience--beyond the tithe.
5. Giving generously, being “willing to share”
  (2 Cor. 9:6).
6. Surpassing generosity. Giving out of God’s
  bounty, becoming a conduit of His blessing
  (2 Cor. 9:8,10-11).

  1 George Barna, “Americans Were More Generous in 2001 Than in 2000,” 4/9/02, accessed at on 2/7/03

..\Documents and

Jim Sutherland, Ph.D., Director
        Jim’s Badboy 13 Omens
1.   If you missed a paycheck, you’d qualify
     for federal disaster aid.
2.   You hit-up your friends for a loan until
     payday, or you’ve gotten a check-advance
3.   Your first strategy to meet an unexpected
     bill for $1000 is the Lotto 5.
4.   You owe more than you own. If you died,
     your family would need help.

              Jim’s Badboy 13
5.   You skimp on groceries and work clothes.
6.   You have no plan to (1 save for your
     children’s education (2 pay off your home
     (3 have enough for retirement.
7.   Because of debt, your paycheck is already
     spent. But you might be able to rent a
8.   You try to stay one-jump ahead of disaster
     by rolling over credit card balances, and
     carefully picking who to pay this month.
             Jim’s Badboy 13
9.    Dollars stick to you like Superglue when

      you have the chance to give.
10.   You argue almost every week about
11.   You’ll really be content when you get
      the new ….
12.   Bankruptcy is looking good.
13.   You’re trying to get rich quick.

 The Problem:
    ―33% of born again adults say it is
     impossible for them to get ahead in life
     because of the financial debt they have
     incurred.‖ BarnaPageStats.htm accessed 8/20/98
    ―For at least a half century, household debt
     has been rising faster than income, as ever-
     higher levels of discretionary income have
     increased the proportion of income spent on
     assets partially financed with debt.‖ Alan
     Greenspan (Oct. 2004)

 The Problem:
    ―Throughout the 1960s, '70s, '80s, and '90s,
     households showed a surplus of varying
     degrees. It wasn't until 1999 — for the first
     time in about 50 years — that U.S.
     households started spending more than they
     took in. What started as a small deficit of
     about $50 billion among households quickly
     spiked to a deficit of more than $350 billion
     in the second quarter of [2004].‖ U.S. Consumer Credit
     Card Debt May Crash Economy, 12/31/04 By Susan C. Walker,2933,143037,00.html

 The Problem:
    On average, we carry eight cards per person and
     have a balance of $8,400 in credit card debt.
     Twenty percent of our cards are maxed out,
     reports, which tracks the lending
     industry's machinations. And just 40% of
     Americans pay off their accounts in full at the
     end of the month. The average line of credit is
     around $3,500. (A decade ago it was just
     $1,800.) The average household pays their
     lender $1,000 a year in finance charges. ―Our Credit
     Crunch‖ Dayana Yochim accessed 8/20/05


 The Problem:
    Home equity loans are more popular than ever
     as people borrow against their home to feed their
     spending binge. Today, average homeowners
     owe nearly 50% of their home's value. Twenty
     years ago that figure stood at 30%. Can't you
     just picture the modern-day needlepoint plaque?
     "Home, Sweet Credit Line." ―Our Credit Crunch‖ Dayana Yochim accessed 8/20/05

    The US government owes over 8.2 trillion dollars in
     2/06. ( accessed 2/10/06)
    What is your debt/income ratio—more than
     10% (non-household debt to monthly income)?

 The Bible discourages debt (Rom. 13:8; Prov. 22:7;
  Dt. 28:44), but it isn’t sin (Matt. 5:42; Dt. 23:20)
 Bankruptcy should be avoided and all debts satisfied
  (Ps. 37:21).
 Debt is usually poor stewardship
    Paying only the balance due (2%) on $2,000 at 18%
     would take 30 years and cost $8,000 in interest (Cardweb). A
     mortgage may triple the face amount borrowed
    Average debt for 4-year private schools:
     $17,500 (1998-Nellie Mae)
 Debt may be lack of self-control--Gal. 5:23.

   Debt and Dissatisfaction
• Our consumer debt (debt other than for
  our home, but including home equity
  debt), is generally an excellent
  indicator of our level of discontent.
  – We step outside the circle of God’s
    provision, to get more, by borrowing.
  – Lack of contentment is a spiritual issue.

How Can I Get Out of Debt?
   You must be serious about it. As Larry
    Burkett said, getting into debt is fun, but
    getting out of debt isn’t. It will likely take
   If you are spending much more than your
    income, you must go on a survival lifestyle.
     Before  every purchase you need to ask
      yourself, ―Do I need to purchase this in order
      to survive?‖
   You’ll need to determine if cutting back will
    enable you to get out of debt, or if you’ll
    need to increase income to meet your
     Getting Out of Debt
   If you have cable, or a cell phone, cut them
    off. Buy out your contract if necessary. Stop
    eating out. Tell your family that you won’t be
    able to give gifts as you would like to do, until
    you’re back on your feet.
   But don’t stop giving to God. That would be a
    bad solution.
   Determine ALL your debts and pay off the
    highest interest rate debt first. When that is
    paid off, use the same payment, plus what you
    don’t have to pay on the first debt, to tackle
    the second debt, etc.
    Start Budgeting
 You must go on a strict budget.
 See the ―How to Budget‖ and ―Philosophy of
  Budgeting‖ paper at
 You may need to go to Consumer Credit
  Counseling Service to negotiate lower
  interest rates and penalties.
 In over 20 years of personal financial
  counseling have I seen a completely
  hopeless situation, and none that would
  justify bankruptcy.
Her Money—His Money
 You are one in God’s sight (Matt. 19:5).
 Don’t let money divide you.
 The husband is the head of the wife (Eph.
 5:23). With separate money, the wife can
 develop an independent spirit and ditch
 the husband.
 Have complete financial openness
 between you. Each should know the total
 assets of the union. You should have joint
 ownership of those assets. Both names
 should be on the deeds and financial
 If the man directs the inheritance from
 his family, the wife, in fairness, should
 be able to direct the assets of her
 family, under the final authority of the
 If one of the partners has an
 addiction, then it is not prudent to
 hold all assets jointly. Additions
 include drugs, gambling and
Avoid Separate Bank Accounts
 But have one person balance the books
 and reconcile the statements.
    This person should be the one with the
    greater aptitude, discipline and interest in
    financial matters.
 A husband is wise to obtain the counsel
 of the wife in financial matters. She
 does not want your half of the boat to
 sink. Many husbands regret not
 listening to that counsel. One husband
 told me that he’d now be in ―Fat City‖ if
 he’d have listened to his wife when she
 suggested buying specific pieces of
 property many years ago.

  Pre-nuptial Agreements

If you cannot trust you prospective
mate with your money, you shouldn’t
marry that person. Faithfulness in
money is a small thing (Luke 16:10-
11). Being bound for life to someone
is a heavy matter.

       What Are Your Savings Goals?

• Save money/pursue investments:
   – 8% of those having non-retirement income make
     this their main goal (not all goal responses are
• Home purchase or renovation: 8%
• Be debt-free: 4%
• Emergency fund: 2%
  – But 100% have emergencies.
• No goals: 6%    Is this you?

• 67% of workers aged 35-44 and 74% of
  workers aged 45-54 saved something for
  retirement in 2004. Of those 55+, only 69%
  saved something.
   – But 100% of old folks will need something.
Source: Retirement Confidence Survey® 2004
           Social Security Is Not Enough
• Currently, if you were born in 1960 or later, you
  will not be eligible for full Social Security benefits
  until you’re 67.
• As of 2000, if you are a man and live to 65, you
  will live another 16.3 years—to 81.3. That’s a lot of
• Women at 65 live an average of 19.2 more years—
  until they are 84.2—almost 3 years longer than
  men. Will you be able to take care of both of you,
  and will your wife be provided for when you’re
• The average Social Security payment is
  asp 7/24/04)                                                               50
         One dollar can be spent today or
             sometime in the future
• 23% of all workers are very willing to cut back on
  current spending to save for retirement
• 38% are somewhat willing
• 19% are not too willing
• 15% are not at all willing
• Are you among the 34% unwilling to curtail spending
  for retirement?
Source: Retirement Confidence Survey® 2004 (not all responses were given)
• “Earlier this year [2005], Fidelity [Investments] said that,
  based on the current rate of savings, the average
  American household will live on 59 percent of pre-
  retirement income once they stop working.” “A third of U.S.
   workers retire late, lack savings,” Wed Aug 24, 2005, Reuters
   Reasons not to save:
• Present pleasure
  – ―He who loves pleasure will become
    poor, whoever loves wine and oil will
    never be rich.‖ Prov. 21:17
• Misunderstanding
  – ―I’m not supposed to worry about
    tomorrow.‖ But ―The prudent see
    danger and take refuge, but the simple
    keep going and suffer for it.‖ (Prov.

Reasons not to

• ―I have too much debt to be able to save.‖
  – Go on a survival budget. Spend only what you must
    to survive and pay down debt.
  – Pay off your smallest debt first and work up.

• Laziness
  – I’ll start when things aren’t as tight.

  Reasons to do nothing:
• I can’t budget.
  – You can budget. Only my wife likes to budget. The
    alternative is to spend without a plan. Only the very
    wealthy can afford that.
• I can’t save.
  – Unless you are devoured by debt, you can save, if
    you want something in the future badly enough.
• I’m beyond hope.
  – I’ve never seen anyone in about 20 years of
    financial counseling who was beyond hope, or who
    had to file bankruptcy.


•We are far more concerned about having
    good credit—the privilege to accumulate
    more debt--than about saving.
  •In June 2005, the US consumer savings rate
  was 0%. Accessed 8/27/05
•Even ―breaking even‖ is foolish (Prov.
    21:20). Why?

  1, Department of Commerce, accessed 2/5/02
• The Spirit can put to death the desires
  of the flesh (Rom. 8:13).
      Irresponsible spending is a
      ―spiritual‖ problem.
• We save against future ―evils‖ (Prov.
  22:3, 27:12) such as breakdowns and
• An emergency fund of at least 3-6
  months income is prudent.
• Know why you are saving.
   • You need an emergency fund to cover potential major
     expenses. They should be expected.
       •   Appliance or major system failure in the home.
       •   Medical, dental and other un-reimbursed expenses.
       •   Cash for national emergencies
       •   Large auto costs/replacement costs
       •   Track how much in savings is for a particular purpose
• Other savings goals:
   • Inheritance for children/grandchildren (Prov. 13:22)
   • Retirement and old age care—The average SS
     payment is about $10,500/year 7/24/04

   • Kingdom funding
• To make it harder to ―raid‖ your savings,
  make it harder to access.
  • Automatically debit your checking account to
    savings at a bank account hard to access.
  • Automatically debit your checking account to
    invest in the stock of a solid company
    through a dividend reinvestment plan (DRIP).
    Such stock purchases may cost little or
    nothing. Visit for
    details on how to establish this account.
• Establish a ―ladder‖ of savings.
  • Begin with a passbook savings account.
  • When you have sufficient funds, transfer it to an
    out-of-town money market account with low fees
    (such as Vanguard Prime Money Market Fund).
  • From there move into higher-paying investments—
    bonds, CD’s if interest rates are high, mutual funds
    and stocks, or into tangible investments such as
• Try to save at least 10% of your gross
  income. You only think you are saving if it is
  not there at the end of the month.
• Social Security is solvent only until
  20411. Expenses will exceed income
  by 2017. Today 3.3 workers contribute
  per 1 retiree—it will be 2.2 by 2030.

 1, accessed 4/15/05
• The earlier you save and invest the
  better. If you start investing $2,000
  annually at 8% in an IRA at 25, you will
  have $606,487 at 65. If you delay until
  35, you’ll have only $266,427, a loss of

 1 Dean O. Webb, “Don’t delay, start saving today,” Christian Financial Concepts, Money Matters, 10/99, p. 3

   The only mention of retirement is at
    Numbers 8:25-26a, where priests were to
    retire at age 50, probably due to physical
    depletion (see Eccles. 12).
   If you live to 65, you’ll probably live to 831.
   First, be ―rich toward God‖ (Lk. 12:21),
    unlike the rich fool who tried to construct
    heaven on earth.
   Ask God what standard of retirement living
    He wants you to have, then plan toward it.
     1, accessed 4/17/02
•   God’s plans never fail (Is. 14:27; Ps.
    33:11), so we need to try to understand
    God’s will (Eph. 5:17; Jer. 9:23-24).
•   Planning is ―spiritual‖ (Prov. 12:5; 16:3)
•   Get good counsel (Prov. 12:15; 13:10)
•   God can will in our will (Phil. 2:12-13)
•   ―What has God given you faith to believe
    Him for ?‖ Bill Gothard
    •   Try constructing a financial timeline, using 70

• From a false assumption
  • of what ―ought‖ to be able to spend.
  • ―I owe it to myself!‖ ―I deserve to be able
    to ….‖—a deductive approach
• From actual income/provision
  • From within the circle of God’s
    provision—an inductive approach           64
Income usually isn’t the major
issue in budgeting
  • Here is a list of the nations with the
    highest percentage of consumers who
    have no spare cash: 1—America (22%)
    1—Portugal (22%) 3—Canada (19%)
    4—United Kingdom (17%) 5—France
    (16%) 6—Netherlands (15%) ACNielson Online
   Consumer Confidence Survey—Global Survey, 1/11/2005

    • But godliness with contentment is great gain--1
      Timothy 6:6

               HOW TO BUDGET--
                  7 STEPS

1. Pray for wisdom (James 1:5) and for self-
  control (Galatians 5:23). Habitual
  overspending is a spiritual issue.
2. BEFORE spending, plan MONTHLY
  expenses and LONG TERM GOALS
  (greater than 1 year, requiring savings).
3. Record DAILY expenses in a ledger or
  software program—keep a running total in
  each expense category (using the ledger or
  on the outside of a cash envelope).

4. At month’s end, TOTAL expenses in
  each category and compare with
  target figures, and adjust for next
  month, if needed.
5. Compare ALL expenses and with ALL
6. Move any surplus to savings,
  earmarking it for a particular need.
7. Deduct any shortfall from your next
  pay before spending it.         67
Go to
tguide.asp to find
percentages for each
category for your income.

 Budget busters:

Print this form at                              68
     Typical Budget Problems -1
• Spending over 40% of net spendable income
  (gross income, less taxes and giving) for
  housing & utilities
• Long distance/cell phone bills too high
  Tip: use
• Food category out-of-control, including eating
  out Tip: shop from menus
• ―Over-recreating,‖ including cable, trips and
  fitness clubs Tip: spend from envelope
• Paying too much for auto insurance & having
  inadequate life insurance
    Typical Budget Problems -2
• High debt load and failure to even list and
  total all debt Tip: debt list at
• Little or no savings—failure to plan for
  future needs and goals
• ―Miscellaneous‖ spending out-of-control
• Unable to pay for private schooling
• Putting too much or too little into
  retirement investments
    Typical Budget Problems -3

• Little giving to Christian causes & too
  much giving to relatives
• Inadequate or inordinate tax deductions
• High cost of health insurance—consider a
  good Christian health cooperative: see

                  Budget Balancing
How do Americans try to balance their
  • Cutting down on take-away meals—
  • Saving on gas and electricity—61%
  • Cutting back on out-of-home
  • Spend less on new clothes—54%
  • Not driving as much—47%
  • Switching to less expensive grocery
    brands—42% ACNielson Online Consumer Confidence Survey—Global
    Survey, 11/2005
             BUDGETING TIPS
• At year’s end, total all expenses for each
  category and divide by the number of months
  included, to refine your budget figures.
• You will probably have to adjust your budget
  each month if your income varies (using a
  computer spread-sheet helps). See:

• Expect UNEXPECTED expenses. Satan
  will try to discourage you. This is the
  reason for an emergency fund. The budget
  may take at least 6 months to begin to work
• If you use software (Quicken™,
  Money Matters™, or MS Money™), use
  both a checking account (checks & debit
  cards) AND a ―cash‖ account, then combine
  them when running reports. You may also
  need a credit card account (if you pay them
  off each month), and again, combine
  accounts for a report. Using software
  makes tax season fairly simple.               74
As of_________________

(Courtesy of Christian Financial Concepts, Inc.)
Visit the Financial Ministry section of
         Liquid Assets[1]                                LIABILITIES[2]
   ___________________ $____________                    ___________________       $___________
   ___________________          ____________            ___________________        ___________
   ___________________          ____________            ___________________        ___________
   ___________________          ____________            ___________________        ___________
   ___________________          ____________            ___________________        ___________
   ___________________          ____________            ___________________        ___________
Total liquid assets             $____________          TOTAL LIABILITIES          $___________

        Invested Assets[3]
  ___________________ $____________
  ___________________        ____________
  ___________________        ____________
  ___________________        ____________               NET WORTH                        $__________
  ___________________        ____________               (Total Assets less Total Liabilities)
  ___________________        ____________
Total invested             $____________

       Use Assets[4]
  ___________________ $____________                     TOTAL LIABILITIES
  ___________________     ____________                  AND NET WORTH               $___________
  ___________________     ____________
  ___________________     ____________
  ___________________     ____________
  ___________________   ____________
Total use assets        $____________
        TOTAL ASSETS $____________

[1] Cash, Savings Accounts, Checking Accounts
[2] Outstanding Real Estate Loans, Credit Cards, Auto Loans, Personal Loans                            75
[3] IRAs, TSAs, 401ks, Investment, Real Estate, CDs, Antiques presented at fair market value.
[4] Residence, Autos, Personal belongings presented at fair market value.

To find out how to join a 10-week
small group Crown Ministries
financial accountability group, call
– For the Chattanooga, Tenn. Area, the
  contact person is Jennifer Helton, CPA,

        Are You Ready to Invest?
• Is consumer debt (non-mortgage)
  paid? We should not tell creditors to
  wait for their money (Prov. 3:27-28).
• How is your emergency fund?
• Are you adequately insured (auto,
  home, health, life)?
• Can you invest without debt?
• Do you know your investment goals?
• What is your toleration for risk and
  your freedom to risk?
        Pre-investment Principles
• The best investment is in God’s
  Kingdom. The return is guaranteed
  and nothing can diminish the
  principal (Luke 12:33).
  – Do I believe that God will reward the
    generous, or am I building my own
    heaven on earth?
• By application, the parable of the
  talents indicates that we should try
  for the best return on investments,
  consistent with biblical
  ethics (Matt. 25:14-28).
        Solomon’s Principles

• Solomon, of incredible wealth,
  counseled to be vigilant with the
  wealth we have (Prov. 27:23-27).
  – Investing requires ongoing scrutiny.
  – Money takes wings (Prov. 23:5).
• Don’t try to “get rich quick” (Prov.
  23-4-5). In fact, don’t try to get rich
  (1 Tim. 6:9). This is an American
           Solomon’s Principles
• Spread risk (Eccles. 11:2, 6).
  – Buy mutual funds.
  – Diversify—among size of companies,
    between stocks (equities) and bonds
    (debt), or among geo-economic spheres or
    kinds of economies, etc.
• Gain understanding, even if costly
  (Prov. 4:7). Libraries of investment
  information are on the Internet.
  Investment books, magazines and
  newsletters abound.
Investment Strategies
• Own your home debt-free—a
  retirement foundation.
  – Mortgage calculators, etc. are at
• Invest while young, so you can
  tolerate greater risk.
  – With age, risk should decrease.
  – Bonds generally become a larger
    part of the portfolio with age.
Sources of Understanding

 • Invest in areas you understand
   (Larry Burkett). Gain information.
 • Crown Ministry
   Christian financial resources
 • The Motley Fool has online
   courses & glossary
   Very current information
  Selecting Mutual Funds
• Sound Mind Investing Newsletter:
  – Currently about $8 per month for web
• Great
  rating system, current articles and
  a free “university.”
• Use Morningstar ratings—5 stars is
  best, (top 10% of sector). Your
  library may have a subscription.
 Some Mutual Fund Types
• Index funds match indexes—such
  as the S&P 500 (500 biggest
  companies1), and the Russell 2000
  (small companies).
• Large capitalization funds invest in
  companies of about 10 billion in
  market value, mid-cap in
  companies of 1-10 billion1 and
  small-cap in smaller companies.
 Some Mutual Fund Types
• Risk increases as company size
  decreases. Having some stock in
  each (large, mid, small cap)
  category is good diversification.
• Generally there are “value”
  funds/stocks, good for current
  price, and “growth” funds, with
  potential for company earnings1.
  “Blend” funds combine both.
  Growth funds have greater risk.

  Buying Stocks
• “Sector” funds invest in specific
  areas, such as technology, real
  estate, energy, pharmaceuticals,
  etc. Risk increases as the breadth
  of investment decreases.
• “No-load” funds do not charge a
  commission, but do have
  administrative expenses, and are
  preferable to “loaded” funds.
  Buying Stocks

• You can purchase stocks through
  discount brokers, such as
  Sharebuilder, Ameritrade or Datek,
  or through brokers offering
  investment advice.
 Retirement Plans
• Company 401-K’s and 403-B’s (for
  non-profits) offer tax-free
  accumulation of any earnings and
  shelter current income.
• Particularly good are employer-
  matched funds.
• Beware of over-concentration in
  an employer’s stock.
  Retirement Resources
• Vanguard Group—IRA’s, etc.
• CNN/Money Do
  a site search on “retirement.”
• Social Security
• 401k plans 
Estate Planning Resources

• Legal information
• National Network of Estate Planning
• Elderly issues
• Deloitte & Touche Financial
What if your personal income
¤ Will you spend it upon yourself and your
  family? Are you a bucket or a funnel (L.
  Burkett). Will you give at least a tithe of
  your income to the work of God? Or will
  more money lead you away from God
  (Matt. 11:14)?
¤ Will you be more generous and better
  steward of your life and gifts, or simply
  enjoy personal financial freedom with a
  focus upon this life?
  African American Personal

¤ As of February 2006, African
 Americans had an annual buying
 power of 762 billion dollars (expected
 to rise to 981 billion by 2010).                                        “The US African
 American Market”
 accessed 1/8/07

¤ Black household contributions were 1.9%
 of expenditures in 20031. Telephone
 services were 2% and insurance was
                             1 Target Market News
 What if income increases to
         your church?
¤ Will the church spend it upon its own
  people, upon African Americans, and
  ignore the global Kingdom of God?
¤ Do we care about the 37,000 people
  who God didn’t wake up this
  morning, who never even had a
  chance to hear of Jesus Christ?
OK, What Is Left to Do?
¤ The number of unevangelized people by
    mid-2007 is 1,850,402,000, which is 28% of
    the global population. As of mid-2007, there
    are 4,420,319,000 non-Christians on the
    planet. Of these, Muslims total
    1,359,745,000, Hindus total 888,300,000
    and Buddhists total 382,482,000. Muslims
    and Hindus both have a higher growth rate
    than the general Christian population, due to
    higher birth rates.
¤   David Barrett and Todd Johnson “Missiometrics 2007…” International Bulletin of Missionary Research,
    Jan. 2007, p. 32.
          1 From “Annual Statistical Table on Global Mission: 2002,” International Bulletin of Missionary Research, Jan. 2002, p. 23
¤ Ghana sends 500 missionaries per year. Her
    population is 22.1 million and her Gross
    National Income is 10 billion. African
    Americans spent 10.7 billion on household
    furnishings and equipment in 2004. Nigeria
    sends 2500 missionaries per year and has a
    Gross National Income of 74.2 billion
    dollars. African Americans spent this much
    on vehicles, insurance, clothing and gifts in
    2004. Sources: The World Bank:
¤ ; the World Christian
    Database and Target Market News
    A Traditional Black Church
       and Global Missions
¤ One traditional church in Chattanooga with
  a budget of $120,000 spent .4 % on
  evangelistic home missions (to blacks).
¤ This church spent NOTHING on global
  missions. More was spent on the annual
  men’s breakfast and on the copy machine
  than on missions.
¤ What percentage of your church budget
  goes to cross-cultural/global ministry?
¤ “The tragedy is that after we are born again, we can
    build upon the Rock things that are going to be
    consumed, so that after we have stood before the
    Lord Jesus Christ as Judge we have little left. This
    is a danger not only to businessmen but to
    missionaries and ministers, not only to individuals
    but to congregations and organizations. By God’s
    grace, let us not be infiltrated by the values of
    affluence and personal peace. Let us use the
    treasures God has given us in such a way that
    when we come to that day we will have treasures
    laid up in Heaven and people eagerly waiting for
¤   Francis Schaeffer, No Little People, ISBN: 0891073345, 3:191.
   Will Generations of African
  American Christians be Lost to
             Stuff ?
¤ Since the early 1980s, Black income has been
 rising. African Americans finally have an
 opportunity to achieve the American Dream,
 to have “a piece of the rock.”
     If we focus upon accumulating stuff, that will never
     “Whoever loves money never has money enough;
      whoever loves wealth is never satisfied with his
      income. This too is meaningless.” Ecclesiastes 5:10
     All Christians should seek first the Kingdom, not
      prosperity. Where our treasure is, there is our heart
      (Matt. 6:21).

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