Are you prepared for the coming crisis? Personal finance God’s way!

We will pick up on our study of angels at a later date. I think now is a prudent time to focus on finances and how to handle money in a God homoring manner. Every one is talking about the recent rise in Gas prices- there are many things responsible for this, unrest in the middle east is one factor but the oil prices are largely driven by supply and demand. I don’t know about you but last spring when the gas prices hit nearly five dollars a gallon- that pretty much wiped out any savings I had. I am just beginning to revover from that and they are up again in February this time, and there are rumors of five dollars a gallon by Memorial Day. If the economy continues on its present course it is only to get worse. Granted some optimistic numbers came out last week but I think they are skewed and give a false hope and we will see revised numbers that give a totally different picture. No matter what, remember our hope is in Truth, that is Jesus, and He gives true hope to those who accept His offer of salvation. I am going to cover two things here- one a continuation of our discussion on attitude and then a practical way to set up a budget that will work for you no matter what your income is and no matter what your situation is, a budget is like a map- it will show you where you are at and how to get where you want to go. God uses money to enhance and direct out lives but satan will try to use to entangle and shackle us. We need to recognize the danger of financial bondage. Financial difficulties is probably the number one reason why marriages fail due to the stress and worry that finacial difficulties brings. Why do we have financial difficulties? It is because we have violated one or more scriptural principles. It is not always a lack of money that causes stress, an overabundance can cause stress and worry too. If there is too little – the concern is getting more- if there is an abundance the worry is about losing it. Again we see that in God’s Word is attitude that is reflected. Lets take a look at Proverbs 30:7-9- which is one of my favorite verses!

 

Proverbs 30:7-9 (New King James Version)

Proverbs 30:7-9

New King James Version (NKJV)

7 Two things I request of You
(Deprive me not before I die):
8 Remove falsehood and lies far from me;
Give me neither poverty nor riches—
Feed me with the food allotted to me;
9 Lest I be full and deny You,
And say, “Who is the Lord?”
Or lest I be poor and steal,
And profane the name of my God.

 

We can see that the danger is riches is that we might forget where those riches came from and forget about God and become content without Him, and that the danger of poverty is that we might be tempted to steal and dishonor God.

 

Now we move on need to define what a debt is. A debt is something that is owed that one cannot pay. In other words, it is unmet obligations. Money borrowed and repaid according to terms is not a debt but is an obligation, it bcomes a debt when that obligation cannot be met.

Lets look at Proverbs 22:7

Proverbs 22:7

New King James Version (NKJV)

7The rich rules over the poor,
And the borrower is servant to the lender

We see that the borrower becomes a servant or slave to the lender. When one borrows beyond his abiltiy to pay it is because of a lack of self discipline to save for the object or the inability to deny oneself a maeterial desire.

Lets look at Luke 12:15 for a moment

Luke 12:15

New King James Version (NKJV)

15And He said to them, “Take heed and beware of covetousness,for one’s life does not consist in the abundance of the things he possesses.”

The fact the someone cannot meet their obligations is the result of an earlier attitudes. Fill in the blank here:

Beware of___________________________

Lets take a look at Proverbs 21:17

Proverbs 21:17 (New King James Version)

Proverbs 21:17

New King James Version (NKJV)

17 He who loves pleasure will be a poor man;
He who loves wine and oil will not be rich.

Does this mean that God disallows any kind of pleasure or enjoyment?

OK Now lets get to the practical of setting up a budget. I have used most of my adult life this budget that is divided up into categories. I call it the 70-20-10 plan. Sevety percenty of income goes to living expenses, no more than twenty percent of income in debt and ten percent into a liquid savings. These per centages are based on net income aka your take home pay. That is what you have to live on.

ILiving Expenses

a.Rent or mortgage

b.Utilities:

c.electric

d.Natural Gas bill

e.Water Bill

f.Telephone/internet.cell phone

g. Groceries

h. transpotation costs

  1. auto payment
  2. insurance on auto
  3. gasoline
  4. repairs and maintence

also include here gifts for birthdays and Christmas and also in this category would be clothing and laundry expenses.

  1. credit card paynments and other loans as these are paid down and paid off those funds should go to savings for future use.
  2. And this is last bit should be first- Saving – 10% of take home pay. More to come on finance – how to handle your money in a God honoring manner.

 

 

 

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