Biblical financial principles lead to sound decisions

Biblical financial principles lead to sound decisions

Christians make the best financial decisions according to God’s plan for their lives when they understand His biblical financial principles. This requires a thorough understanding of God’s perspective, and that understanding comes from studying God’s Word and communicating with Him.

Below are principles to consider when making financial decisions.

Avoid speculation

Christians should seek God’s increase for them rather than trying to increase their financial worth through speculative schemes.

Assess every so-called opportu­nity with your relationship with Christ and don’t let others make financial decisions for you. Instead, make decisions in light of your goals, whether the venture is necessary, and whether it fits into God’s individual plan for your life.

Keep finances current

Christians need to always manage their finances on a current basis, making no provision in their financial planning to borrow money beyond their abilities to repay.

If what you want or desire jeopardizes your future financial freedom, forget it. Impulse buying, either investment or consumption, is disastrous to budgets. So, when evaluating purchases or investments, always consider the financial obligation in light of your known income or available funds. Maintain the principle of staying debt-free.

Maintain Christian witness

Consider every decision, espe­cially financial decisions, on the basis of its effect on the work and reputation of Christ. God must not be backed into a financial corner and called on only during a time of crisis.

As an example, if you must borrow from non-Christians in order to remain in His will, beware. This course is not according to His plan. “The rich rules over the poor, and the borrower becomes the lender’s slave” (Prov. 22:7).

When Christians deal unfairly or unethically with an individual or business, it is the Christians’ witness that will suffer. Therefore, as a Christian you must establish that no matter what the circumstances you will tell the whole truth, keep your vows, make decisions based on God’s directive and God’s plan, maintain financial honesty and preserve the integrity of Christ in every aspect of your life.

Give — do not loan

Christians should avoid lending to those in need if giving to them is possible. When someone approaches a Christian and requests financial help in order to acquire wants or desires, that request and justification for the request should be questioned. But, if that person is in need and God has directed you to help him or her, then it is your responsibility as a Christian to supply that need.

Never co-sign

To co-sign means to pledge personal assets against the debt of another. It doesn’t matter whether it is personal or business, Scripture specifically forbids this whenever it speaks of surety or striking of hands.

“My son, if you have become surety for your neighbor, have given a pledge for a stranger, … deliver yourself; since you have come into the land of your neighbor, go, humble yourself, and importune your neighbor” (Prov. 6:1–3).

Avoid indulgence

Christians must learn to discern the difference between needs, wants and desires in every financial transaction. This applies not only to purchases of material goods but to investments as well.

Before you buy something, determine whether the purchase is a need or desire, then check it against God’s principles. Before investing, be sure you know your reason for investing and what you will do with the money if God blesses with increase.

Many Christians get frustrated because they cannot distinguish between luxuries and necessities. God wants us to live comfortably, but He does not want us to live lavishly.

Prepare for decreases

Being prepared for unexpected decreases in funds is a vital part of keeping financially current. Evaluate all your financial decisions on the basis of what could happen if there was even a small decrease of income or available funds. Could you make adequate adjustments to live within new spending parameters without having to go into debt in order to maintain your current lifestyle?

Do not operate at the upper limit of income or available funds. Instead, make your financial decisions based on the possibility that if there is a sudden drop in income it may be necessary to reduce your current living standards.

Let peace rule

Often, Christians are not responsive enough to God’s Word or to His presence to hear Him, except through an inner turmoil known as lack of peace.

Many times God uses this lack of peace to provide direction. Accordingly, if He does not give you peace about something, do not become involved. If a quick decision is required, do not get involved. Take the time to think and to pray about any decision, especially financial decisions that will affect your family, and be determined not to make any financial decision under pressure. “It is the blessing of the Lord that makes rich, and He adds no sorrow to it” (Prov. 10:22).

Listen to God’s word

Become receptive to God’s guidance by becoming familiar with His directives and leadership procedures through the study of His Word and by communicating with Him through prayer.

He will place either an unrest or a peace inside you that will confirm His preferred course and His will.

As Christians, if we will be alert to understanding biblical financial principles and sensitive to God’s leading, we usually can avoid financial failures and economic bondage.

(BP)