Are you lost when it comes to managing your finances? Do you want to be a good steward of the money entrusted to you but don’t even know where to start? In this post, Dani shares with us 3 things the Bible says about money and how you can manage your finances better.
Dani Goeppert helps scattered-brained, free-spirited mamas live life more purposefully. She and her husband live in southern Germany and have served local churches, Youth with a Mission Germany, and are currently serving with Students for Christ Germany. When she isn’t running after her two-year-old, you’ll find her learning, starting a new business and writing about simple, spirit-filled living at Life Lived Intentionally.
A rich man goes away on a business trip and has entrusted three managers with his finances in his absence. He knew each of the mangers quite personally and split the money based on their abilities. One received $50,000 the second $10,000 and the third $1000.
The first took the $50,000 and invested it in a new and promising startup. It thrived and he earned $50,000 more.
The second took this $10,000 and invested it into a fund, and he received $10,000 more.
The third took the $1000 in cash and hid it under her pillow so it wouldn’t get lost.
When the rich man returned, each manager showed what they had done with the money. He was greatly pleased with the first two managers, but he was angry with the third.
“Why didn’t you put it into a bank account so that the money would at least gain a bit of interest?” he asked.
She responded with,
“Sir, I know that you’re a crafty businessman, but I was afraid so I did nothing. Here, just take your money back.”
“When I gave you that money, I expected you to do something with it. It’s there to be used and made more of. Why were you so lazy and let fear stop you?”
Shocked, the third manager was speechless.
So the rich businessman took the money he left with her, and gave it to the first manager who had made the most.
He ended with this,
“Look, if I give someone my money and they manage it well, I’m going to give them more. Those who don’t do anything, are just going to spend what they have and it will be taken away. “
If you haven’t guessed it already, this is my rendition of Matthew 25:14-30, The Parable of the Talents. I’ve always found this to be both an intriguing and convicting parable. Here God is portrayed as a sort of wealthy businessman, with high expectations of his managers.
How do you feel when you read that story? Which manager do you most identify with?
Money has always been a sort of cultural taboo. But finances are so important to God that it’s spoken about over 800 times! If finances is so near and dear to God’s heart, let’s make this topic important to our hearts as well.
When talking about money, it’s incredibly important to go first to the Bible. God was the one who created wealth, so he is the one who made a blueprint for how it functions the best.
This post is part of the Saving More, Spending Less Series. You can read the other posts here:
- 6 Ways to Save Money When You’re Broke
- 5 Easy Ways to Start Saving Money for Christmas Now
- 5 Ways Your Family Can Save Money on Healthcare Expenses
- My Top 5 Secrets to Save More Money
- 7 Reasons to Start Building Your Emergency Fund and How to Do It
- 3 Biblical Principles That Will Help You Manage Your Finances This Holiday Season
What the Bible says about money
Three Biblical Stewardship Principles:
#1. It all belongs to God
A common misconception is that the money we have belongs to us.
This is totally unbiblical. Here are a couple of examples of how possessions are understood biblically:
The earth and everything in it, the world and its inhabitants, belong to the Lord. – Psalm 24:1
and
Riches and honor come from You, and You are the ruler of everything. Power and might are in Your hand, and it is in Your hand to make great and to give strength to all. – 1 Chronicles 29:12
It’s all His. Done.
#2. Each of us is different
Based on the gift each one has received, use it to serve others, as good managers of the varied grace of God. – 1 Peter 4:10
To one he gave five talents, to another two, to another one, to each according to his ability.– Matthew 25:15
It’s important to note that we are all totally different. God gives us according to our abilities, skills and experience.
He expects us to just be faithful with what we have. Not look at what everyone else is doing and try to be like them.
These gifts are used to serve others- not to be hoarded or wasted.
#3. We are His good managers
So if you have not been faithful with the unrighteous money, who will trust you with what is genuine? – Luke 16:11
With gifts, comes responsibility. We saw in the Parable of the Talents that the rich man has high expectations of his managers.
As God’s manager when they slack off, they pay the consequences. You don’t just receive more money and gifts if you’re not a wise steward.
If you’re not faithful with the little money you have, how can God trust you with more?
The Tale of Two Families
Imagine that there is a large heavenly foundation which has announced that it will give one family $100,000.
All that is required is a simple interview.
Two families are chosen and invited to a meeting.
The first family is asked,
“How much income do you receive a month?”
The husband responds with,
“oh around $3000 I think.”
“How much do you spend a month? What is the sum total of all your bills?” is the next question.
To which the wife fidgets and responds,
“Umm, we’re not sure.”
“Alright, so if you were awarded this $100,000, what would you do with it?”
The husband and wife both look at each other questioningly and the wife responds slowly,
“Well, we’re not exactly sure, but we could use the money.”
The second family comes to the interview and are asked the same questions.
“How much income do you receive a month?” asks the interviewer.
The husband pulls out an overview of their last 12 months and presents it to them.
“Alright, now what are your expenses and bills each month?”
To which the wife shows exactly each bill, and payment they’re making each month.
Finally, the last question is asked,
“If you were awarded this $100,000, what would you do with it?”
In response, the wife pulls out an already completed budget and plan of what they would do with the money.
A portion of it would pay off all their debt, another portion is allotted to give away, another portion is to save, and still another portion to invest.
Now if you were the interviewer, which family would you award the money to?
This story really put things into perspective doesn’t it?
Why would God ever entrust us with more money if we had no clue as to where our finances stood, let alone no idea of what to do with the money?
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How to Manage Your Finances Better
I am convinced that God expects much more of us than just living from paycheck to paycheck. He really desires growth and abundance in every area of our lives. Not abundance just to benefit us, but to serve others and ultimately Him.
Here are four actionable ways to be more intentional with your finances:
#1. Track ALL of your spending for three months.
For three months I wrote down every single thing that we spent. This helped us to see where exactly our money was going, and pointed out areas where we were overspending.
Because we purchase so many things via online transactions (debit and credit cards), it’s hard to actually see what is being spent.
I started with a little red book and just wrote every single thing down. You can see the method I use here: How to Spend Money without the Guilt.
#2. Separate your spending into categories and create a budget
For instance, rent or mortgage, utilities, groceries, clothing, entertainment, vacation etc. How can you distribute your money appropriately?
Where are you spending too much, where would you like to spend or give more?
#3. Try the envelope system
If you look at my above link you’ll see a video of exactly what I mean. Basically, you try to limit all credit card and debit use and just use cash.
It’s harder to say goodbye to the cash in your hand than it is to swipe a card.
{So true!!! My husband and I also use the envelope system for a few categories in our budget, like food, for example, and it helps us save a lot of money by keeping us accountable. – Isabel}
#4. Save on purpose.
The idea here is not just to save to have a nice cozy nest egg. After all, we just read in 1 Peter 4:10 that we are to give “…based on the gift each one has received, use it to serve others…” It is good and wise to make sure you have enough to take care of your household and cover all of your needs.
But saving should always be done with intention.
Write a list of things you’d like to save up for, put a dollar amount on them, and set aside money.
Start managing your money better today!
The outcome of these simple steps for our family was that we paid off all of our debt, have been able to save, and invest in our future.
We are a single income household of six, so this is impressive. It’s something that felt uncomfortable at first. Debt is more easily ignored than dealt with, and saving can feel like a burden when you don’t have much, but it is so worth it.
Now that I have a good overview of our finances, I also feel more confident in our future and less guilty about spending.
Start off slow and just start writing down all of your spendings. You may be surprised at how much money you actually have!
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