These are five basic financial principles that Nancy & I put in place 30 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 practice of giving first fruits also settles the matter. It’s much easier than trying to decide how much at the end. Avoid the temptation to wonder what the tithe amount could have bought.
Principle 2: 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.
Take advantage of (401k, IRA, power of tax deferral, compound interest) as long as they remain legal & good conscience investments.
Principle 3: Avoid debt. PERIOD.
Debt, not in it self 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. Increasing house payments proved to be a good long term savings plan.
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! Most 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.
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.
It’s likely something will be coming on lifestyle.
No comments:
Post a Comment