FINANCIAL FREEDOM

HOW TO MANAGE YOUR MONEY WISELY

“Keep your lives free from the love of mon ey and be content with what you have.”

Hebrews 13:5

Do you struggle with managing money?

Do you never seem to have enough to m ake ends meet?

Maybe you secretly envy the financial wealth of others. Whether you have a great deal of money or very little, until you really believe that the money in your possession is not your mon ey but God’s. money, your finances will always be a source of discontent. Our heavenly Father owns it all, yet we worry and fret over not having enough. We manipulate to get more… then agonize over l osing what we have. Freedom from this preoccupation with money (financial bondage) involves more than having enough money to bask in the shade of a prosperous lifestyle. It’s more than learning to budget expenses, to save regularly, to invest wisely. True financial freedom is being  content with what God gives you. And contentment is a matter of the heart!

What Are Four Financial Myths?

“Whoever loves money never has money enough; whoever loves wealth is never satisfied with his income.”

(Ecclesiastes 5:10)

#1. Finance

Finance is a system of money management that includes banking, circulation, credit, investments, economics, and accounting.

Myth:  “If you live a godly, Christian life, you will experience financial gain and prosperity.”

Truth:  According to God’s Word, godliness is not a means to financial gain. The Bible calls this “false doctrine” taught by false teachers.

“If anyone teaches false doctrines.… He has an unhealthy interest in controversies and quarrels about words that result in envy … and constant friction between men of corrupt mind, who have been robbed of the truth and who think that godliness is a means to financial gain.”

(1 Timothy 6:3–5)

#2. Money

Money is any means of exchange, including coins and paper currency, circulating in the culture issued by a civil authority as a measure of value.

Myth:  “Money is the root of all evil.”

Truth:  No, money can be used for great good. According to the Bible, the “love of money” is a root of evil.

“The love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.”

(1 Timothy 6:10)

#3. Steward

A steward is a trustee, guardian, or overseer who manages the property or financial affairs of another person. All money belongs to God, and we are only stewards of His resources.

“The earth is the Lord’s, and everything in it.”

(Psalm 24:1)

Myth:  “If I just have enough money, I will be satisfied.”

Truth:  Satisfaction with your financial situation does not come from the amount of money you have, but in wise management of what you have.

“His master replied, ‘Well done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things. Come and share your master’s happiness!’ ” (Matthew 25:23)

(Read The Parable of the Talents in Matthew 25:14–30.)

#4. Debt

Debt is the condition of owing something to another. The debtor (the one who owes another) is under obligation to pay the debt.

Myth: “You must borrow money and pay it back in order to prove financial responsibility and establish good credit references.”

Truth:  Borrowing and paying back money is not always necessary to get credit. Most lenders are more than anxious to extend credit to consumers in order to collect inflated interest rates over an extended period of time. The Bible says to be aware, because …

“The borrower is servant to the lender.”

(Proverbs 22:7)

What Are Four Financial Tests of Discontentment?

#1. Do you pine after money?

The Hebrew word keseph, translated most often as “money,” actually means “silver” (from its pale color). It is derived from the root word kasaph, which means “to become pale,” by implication “to pine after.”

“Whoever loves money never has money enough; whoever loves wealth is never satisfied with his income.”

(Ecclesiastes 5:10)

#2. Do you place the same value on both money and God?

In the New Testament the Aramaic word mamonas, translated “mammon” or “money,” means “wealth.” The word is defined as “material wealth or possessions especially as having a debasing influence.” This word is used to convey the concept that “money is deified” (worshiped as God).

“No one can serve two masters. Either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve both God and Money.”

(Matthew 6:24)

#3. Can you be trusted to manage God’s money wisely?

A Greek word translated as “manager” in the New Testament is oikonomos, which means “a manager or overseer.” It is also translated “one who has been given a trust” or “a trustee.”

“Now it is required that those who have been given a trust must prove faithful.”

(1 Corinthians 4:2)

#4. Are you in financial bondage to credit lenders?

The Greek word chreopheiletes means literally “a debt-ower.” Found in the parable of the dishonest manager (Luke 16:1–13), this word points to the ancient system of extending credit.

“He called in each one of his master’s debtors.… ‘How much do you owe my master?’ ”

(Luke 16:5)

God’s Purpose for Money

• To give us what we need

“Do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ For the pagans run after all these things, and your heavenly Father knows that you need them. But seek first his kingdom and his righteousness, and all these things will be given to you as well.”  (Matthew 6:31–33)

• To exhibit trustworthiness with heavenly riches

“Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much. So if you have not been trustworthy in handling worldly wealth, who will trust you with true riches?”  (Luke 16:10–11)

• To gather eternal treasures

“Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where moth and rust do not destroy, and where thieves do not break in and steal.”(Matthew 6:19–20)

• To live dependently on the Lord

“Keep your lives free from the love of money and be content with what you have, because God has said, ‘Never will I leave you; never will I forsake you.’ ”  (Hebrews 13:5)

• To exalt the power of God

“Some trust in chariots and some in horses,but we trust in the name of the Lord our God.”  (Psalm 20:7)

• To demonstrate His power to bless

“ ‘Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,’ says the Lord Almighty, ‘and see if I will not throw open the floodgates of heaven and pour out so much blessing that you will not have room enough for it.’ ”  (Malachi 3:10)

• To benefit God’s kingdom

“They gave as much as they were able, and even beyond their ability. Entirely on their own, they urgently pleaded with us for the privilege of sharing in this service to the saints. And they did not do as we expected, but they gave themselves first to the Lord and then to us in keeping with God’s will.”  (2 Corinthians 8:3–5)

The “Ten Commandments” about Coveting

I Thou shalt not covet thy neighbor’s house. 

II Thou shalt not covet thy neighbor’s car. 

III Thou shalt not covet thy neighbor’s new, fancy gadgets. 

IV Thou shalt not covet thy neighbor’s jewelry.

 V Thou shalt not covet thy neighbor’s job. 

VI Thou shalt not covet thy neighbor’s bank account. 

VII Thou shalt not covet thy neighbor’s vacations. 

VIII Thou shalt not covet thy neighbor’s wife. 

IX Thou shalt not covet thy neighbor’s leisure time. 

X Thou shalt not covet thy neighbor’s status in life. 

“If you harbor bitter envy and selfish ambition in your hearts, do not boast about it or deny the truth.”

(James 3:14)

What Are Characteristics of Financial Bondage?

Bitterness

God gives each of us the grace to be content in the circumstances in which He places us. But when we are discontent with God or others over our finances, our anger spreads a deep root of underlying bitterness, affecting both us and those around us.

“See to it that no one misses the grace of God and that no bitter root grows up to cause trouble and defile many.”

(Hebrews 12:15)

Overcommitment

Overcommitment to one’s work leads to a life that is out of balance with what God desires for us. This workaholic lifestyle is centered around business or work to the exclusion of rest, relaxation, and relationships. Many Christians fall into this kind of bondage, which is also characterized by …

• Rationalizing our need to overwork
• Carrying our work everywhere
• Monopolizing every conversation with talk about our work
• Lacking ability to truly enjoy time off or planned vacations because of work
• Feeling guilty when not working
• Keeping work projects generated in order to maintain a lifestyle of activity

“The blessing of the Lord brings wealth, and he adds no trouble to it.”

(Proverbs 10:22)

Naiveté

To be naive is to be gullible and easily fooled by deception and dishonesty.

• Easily tempted by “get-rich-quick” schemes
• Borrowing money to invest
• Lack of sales resistance
• Purchasing luxuries while neglecting needs
• Vulnerability to frauds and swindlers
• Blindness to unsound business ventures
• Emotional and spiritual immaturity

“The wisdom of the prudent is to give thought to their ways, but the folly of fools is deception.”

(Proverbs 14:8)

Dishonesty

Deceitfulness in finances is a subtle evil. It’s usually the little, unseen deceptions that reveal a heart of insincerity, hypocrisy, lying, cheating, fraud, and stealing.

• “He will never know he gave me too much change.”
• “Even though I have worn this, the store will take it back.”
• “I’ll just tell him the mower was broken when I borrowed it.”
• “I’ll put this dinner with my family on the expense account.”
• “I’ll find a way to make this expense tax deductible.”

“Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much.”

(Luke 16:10)

Anxiety

Anxiety involves uneasy feelings, apprehension, fear, worry, or emotional tension over …

• Unpaid bills
• Overextended investments
• Credit card debt
• Lack of savings
• Family problems
• Driving ambition
• Lack of trust in God’s provision

“An anxious heart weighs a man down.”

(Proverbs 12:25)

Greed

Possessed by Possessions—The Rich Fool

(Read Luke 12:13–21.)

A man came out of the crowd that was following Jesus and asked Him to tell his brother to relinquish his share of their inheritance. (According to Jewish law, the eldest brother would be responsible for maintaining the family resources.) Jesus did not get drawn into family property disputes and He did speak to the heart of the matter by warning the crowd about greed. Greed is defined as “avarice” or “insatiable desire for wealth or gain.”

Jesus then told a story about a rich man who had accumulated an overabundance of things. Then the man said, “I’ll build bigger barns to store all this wealth.” While the rich fool was content in his false security, Jesus warned, “This very night your life will be demanded from you. Then who will get what you have prepared for yourself?” (Luke 12:20). Jesus warns against having a love of material security instead of a heart that invests in the things of God.

“For of this you can be sure: No immoral, impure or greedy person—such a man is an idolater—has any inheritance in the kingdom of Christ and of God.”

(Ephesians 5:5)

Envy

Envy is a resentful desire to have that which belongs to another. Envy grabs hold of a discontented heart and causes underlying pain. God felt strongly enough about the serious consequences of envy that He included it in the Ten Commandments.… Yes, envy or “covetness” stands side by side with idolatry, stealing, and murder.

Five Principles of Managing Money

Principle #1—The Law of Contentment

“I know what it is to be in need, and I know what it is to have plenty. I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want.”  (Philippians 4:12) 

• Remind yourself that God owns it all!

“If I were hungry I would not tell you, for the world is mine, and all that is in it.” (Psalm 50:12)

• Recognize God as the source of all provision.

“You may say to yourself, ‘My power and the strength of my hands have produced this wealth for me.’ But remember the Lord your God, for it is he who gives you the ability to produce wealth.”  (Deuteronomy 8:17–18)

• Read 1 Chronicles 29:10–18 on a regular basis.

“O Lord our God, as for all this abundance that we have provided for building you a temple for your Holy Name, it comes from your hand, and all of it belongs to you.”  (1 Chronicles 29:16)

• Request God to reveal what money really means to you.

“Surely you desire truth in the inner parts; you teach me wisdom in the inmost place.”  (Psalm 51:6)

Does money symbolize …

• Security?
• Significance
• Independence?
• A means to helping others?
• Self-worth?
• Status?
• Power?

Learn:  Philippians 4:19. Once you discover the need or needs you are expecting money to fill, quote this Scripture in your heart whenever Satan tempts you with thoughts that steer you toward spending. 

“My God will meet all your needs according to his glorious riches in Christ Jesus.”  (Philippians 4:19)

• Rest in the assurance of God’s love no matter what your financial circumstances.

“Keep your lives free from the love of money and be content with what you have, because God has said, ‘Never will I leave you; never will I forsake you.’ ”  (Hebrews 13:5)

Question: “Will I be wealthy if I follow God’s financial principles for managing money?”

God gives no guarantees about being wealthy. He has different reasons for allowing poverty in the world and for giving wealth to those who do not honor Him. But God does give us many principles in the Bible to help us become wise in the matter of money. Ultimately, we are to trust in His sovereign control over all things, knowing that He does have a plan and a purpose, even in what may seem unfair.

“Rich and poor have this in common: The Lord is the Maker of them all.”

(Proverbs 22:2)

Principle #2—The Law of Self-control

“Put to death, therefore, whatever belongs to your earthly nature … evil desires and greed, which is idolatry.” (Colossians 3:5)

• Start by transferring ownership of everything you own to God.
• Believe in God’s love for you.
• Believe that God wants what is best for you.
• Believe that God will give you your heart’s desire. 

“ ‘The silver is mine and the gold is mine,’ declares the Lord Almighty.”  (Haggai 2:8)

• Separate yourself from the financial sins of greed and idolatry.
  • Repent and confess that your trust in money is sin.
  • Realize that you are enslaved by this sin.
  • Remind yourself of the consequences of financial bondage.

“What shall we say, then? Shall we go on sinning so that grace may increase? By no means! We died to sin; how can we live in it any longer?”  (Romans 6:1–2)

• Set a new goal for managing your finances.
  • Make it your goal to counsel with someone who has financial self-control.
  • Make it your goal to follow God’s plan for your finances.
  • Make it your goal to become wise with the money He entrusts to you.

“We make it our goal to please him, whether we are at home in the body or away from it.”  (2 Corinthians 5:9)

• Stand on truth when tempted to make unwise financial decisions.
  • Know that in Christ you are free from the bondage of sin.
  • Know that in Christ you are free from the power of sin.
  • Know that in Christ you are “dead to sin.”

“We know that our old self was crucified with him so that the body of sin might be done away with, that we should no longer be slaves to sin.”  (Romans 6:6)

• Surrender your will to the will of God.
  • Acknowledge that you belong to God.
  • Acknowledge that God has authority over everything you own.
  • Acknowledge that the decision is yours. You have the choice to obey or to disobey God! 

“You are weak in your natural selves. Just as you used to offer the parts of your body in slavery to impurity and to ever-increasing wickedness, so now offer them in slavery to righteousness leading to holiness.”  (Romans 6:19)

• Stay in step with the Spirit.
  • Avoid thinking that you are solely in control of your finances.
  • Avoid thinking it is okay to occasionally indulge yourself.
  • Avoid moving out from under God’s grace into self-sufficiency! 

“The fruit of the Spirit is love, joy, peace, patience, kindness, goodness, faithfulness, gentleness and self-control.… Since we live by the Spirit, let us keep in step with the Spirit.”  (Galatians 5:22–23, 25)

Principle #3—The Law of Stewardship

“His master replied, ‘Well done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things. Come and share your master’s happiness!’ ”  (Matthew 25:23)

• Read the story in Matthew 25:14–30—The Parable of the Talents.
• Recognize that you are accountable to God for how you spend money.

Accountability means …

• Knowing exactly what comes in
• Knowing exactly what goes out
• Knowing exactly where it goes (budgeting)
• Knowing how to save (regardless of your income)
• Knowing how to put your money to work for you (safe investment planning)
• Knowing how to plan for your future (retirement planning)
• Knowing when and where to give money to God and to others
•  Return the first tenth of your earnings to God—this must be a commitment. 

“Then Abram gave him [God’s priest] a tenth of everything.”  (Genesis 14:20)

Question: “Isn’t the tithe an Old Testament principle that does not apply to today?”

Many people assume that tithing was taught only in the Old Testament. However, in the New Testament, Jesus challenged the hypocritical attitudes of the Pharisees, but He also gave full endorsement to the principle of tithing!

“Woe to you Pharisees, because you give God a tenth of your mint, rue and all other kinds of garden herbs, but you neglect justice and the love of God. You should have practiced the latter without leaving the former undone.”  (Luke 11:42)

• Reserve a percentage of your earnings for savings.
  • Like the ant, a wise steward plans ahead by establishing a habit of saving.
  • Each pay period, put aside a portion of your income for savings. Take out the savings first, or you will not have money left to save.
  • Put aside money each pay period in a major emergency fund.
  • Invest your savings in a low risk investment so that you can gain interest on your savings.

“He who gathers money little by little makes it grow.”  (Proverbs 13:11)

• Respond to the needs of others.
  • The more we grow in the character and love of Christ, the more we will experience the grace of God, which allows us to meet higher standards.
  • The tithe is not an option; it is commanded by God for all of us.
  • When you allow God’s grace to have freedom in your heart, your attitudes toward money will change, and He will use your giving more and more in the lives of others.

“He who is kind to the poor lends to the Lord, and he will reward him for what he has done.”  (Proverbs 19:17)

• Resolve to live by a budget.

Step #1 Determine total monthly income by adding salary, dividends, trust income, interest, or any other sources of fixed income.

Step #2 Determine spendable income by subtracting tithes and taxes.

Question: “The government is wasteful and often makes immoral decisions. Isn’t it better to evade paying taxes and give that money to more worthy causes?”

No. The Bible states that every government has the right and authority to collect taxes. Therefore, you should be faithful to pay what is due to the government. You can’t obey God and at the same time disobey the tax law.

“Give everyone what you owe him: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor.”  (Romans 13:7)

Step #3 Determine fixed monthly expenses for the following areas by looking at last year’s expenditures, then divide the yearly totals by 12.

• housing
• automobile
• food
• clothing
• insurance
• medical expenses
• entertainment
• savings
• miscellaneous
• debt

Total expenditures must not exceed net spendable income.

Step #4 Subtract total expenses from net spendable income to obtain a deficit or surplus.

“A prudent man sees danger and takes refuge, but the simple keep going and suffer for it.”  (Proverbs 22:3)

• Refuse to take the first step down the road to debt.
  • Debt is bondage to another.
  • Debt dishonors God.
  • Debt denotes lack of self-control.
  • Debt violates Scripture.
  • Debt brings God’s judgment.

“There is a way that seems right to a man, but in the end it leads to death.”  (Proverbs 14:12)

Question: “Many parables that Jesus told focus on handling money. Why did Jesus link our spiritual condition so closely with finances?”

Sixteen of the 38 parables deal with the relationship between money and our spiritual motivation. Why? Perhaps because the two basic sins of idolatry and greed are closely associated with the love of money. 

“For of this you can be sure: No immoral, impure or greedy person—such a man is an idolater—has any inheritance in the kingdom of Christ and of God.”  (Ephesians 5:5)

Principle #4—The Law of Giving

• Give to God that which He has commanded.

“ ‘Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,’ says the Lord Almighty, ‘and see if I will not throw open the floodgates of heaven and pour out so much blessing that you will not have room enough for it.’ ”  (Malachi 3:10) 

•  Give, knowing that it all belongs to God.

“ ‘The silver is mine and the gold is mine,’ declares the Lord Almighty.”  (Haggai 2:8)

• Give on a regular basis.

“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.”   (1 Corinthians 16:2)

• Give sacrificially by giving up some of your own desires.

“I testify that they gave as much as they were able, and even beyond their ability.”  (2 Corinthians 8:3)

• Give cheerfully, not reluctantly or under pressure.

“Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.”  (2 Corinthians 9:7)

• Give generously to the poor and needy.

“There will always be poor people in the land.  Therefore I command you to be openhanded toward your brothers and toward the poor and needy in your land.”  (Deuteronomy 15:11)

• Give in response to the needs of other Christians.

“Share with God’s people who are in need. Practice hospitality.”  (Romans 12:13)

• Give secretly without letting others know.

“Be careful not to do your ‘acts of righteousness’ before men, to be seen by them. If you do, you will have no reward from your Father in heaven.” (Matthew 6:1)

“One man gives freely, yet gains even more; another withholds unduly, but comes to poverty. A generous man will prosper; he who refreshes others will himself be refreshed.” (Proverbs 11:24–25)

Question: “How important is the amount of my gift?”

The issue is not how big your gift is, but how big your faith is. Perhaps the most famous gift of all came from the poorest person of all. (Read Mark 12:41–44.)

“They all gave out of their wealth; but she, out of her poverty, put in everything—all she had to live on.” (Mark 12:44)

Principle #5—The Law of Petition—How to Pray for Your Needs

Conditions on Which Successful Prayer Depends

•  Are you a child of God? Have you sincerely received Jesus Christ as Savior and Lord of your life?

“To all who received him, to those who believed in his name, he gave the right to become children of God—children born not of natural descent, nor of human decision or a husband’s will, but born of God.”  (John 1:12–13)

• Have you confessed and repented of any known sin in your life?

“If I had cherished sin in my heart, the Lord would not have listened; but God has surely listened and heard my voice in prayer.”  (Psalm 66:18–19)

•  Are you asking on the basis of having worked hard for God, followed the rules, or having been a “good person”? Or do you base your prayer on your relationship with the Lord Jesus Christ?

“I will do whatever you ask in my name, so that the Son may bring glory to the Father. You may ask me for anything in my name.” (John 14:13–14)

• Is your request within the will of God?

“This is the confidence we have in approaching God: that if we ask anything according to his will, he hears us.”  (1 John 5:14)

• Do you believe in your heart that God has the power to provide and is willing to answer your prayer?

“I tell you, whatever you ask for in prayer, believe that you have received it, and it will be yours.”  (Mark 11:24)

•  Instead of desiring your own will, are you willing to accept God’s will with a submissive heart?

“Father … everything is possible for you.… Yet not what I will, but what you will.”  (Mark 14:36)

“Do not be anxious about anything, but in everything, by prayer and petition, with thanksgiving, present your requests to God.”  (Philippians 4:6)

Question: “If I give money to God, can I expect Him to bless me with financial gain?”

God does not guarantee financial wealth, yet many Christians secretly “give to get.” After Jesus’ death, none of the apostles acquired financial gain. Helping humans amass wealth is not what God is about. He alone will judge and reward the true motives of the one who is giving.

“All a man’s ways seem innocent to him, but motives are weighed by the Lord.”  (Proverbs 16:2)

Checklist for Trustworthy Spending

How do you know whether you are trustworthy in the way you spend money? You must first desire to please the Lord in every way that you manage the financial resources He gives you. Before you purchase anything, ask yourself:

□ “Is this purchase a true need or just a desire?”

□ “Do I have adequate funds to purchase this without using credit?”

□ “Have I compared the cost of competitive products?”

□ “Have I prayed about this purchase?”

□ “Have I been patient in waiting on God’s provision?”

□ “Do I have God’s peace regarding this purchase?”

□ “Does this purchase conform to the purpose God has for me?”

□ “Is there agreement with my spouse (if you are married) about this purchase?”

“ ‘Well done, my good servant!’ his master replied. ‘Because you have been trustworthy in a very small matter, take charge of ten cities.’ ”

(Luke 19:17)

 Key Verses to Learn

“Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much. So if you have not been trustworthy in handling worldly wealth, who will trust you with true riches?”

(Luke 16:10–11)

Key Passage to Read and Reread

Matthew 6:25–34

"This is what the Lord Almighty says: ‘Give careful thought to your ways. You have planted much, but have harvested little. You eat, but never have enough. You drink, but never have your fill. You put on clothes, but are not warm. You earn wages, only to put them in a purse with holes in it.’ ”

(Haggai 1:5–6)

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