Finances are a touchy subject for many people. Even the word “finances” is enough to make some people cringe. But, they don’t need to be. Having a basic understanding of personal finance can go a long way in securing your future and the future of those you love.
This blog will help you understand how to integrate biblical principles in a modern-day world focusing on financial planning in every stage of life. From saving money and budgeting wisely to getting out of debt and saving for retirement, we’ll cover it all. Let’s get started!
Why you need Biblically sound financial plans
It’s not just about spending and making money. If you’re interested in your financial future, you’ll want to make plans for how to save, what to invest in, and when you should consider debt repayment. And it’s not enough to focus on your finances either. You also need to prepare for the financial needs of family members and loved ones who depend on you financially.
The Bible tells us that we’re called to care for the poor and needy. This is a good reminder that we’re accountable for providing for those around us. We can’t do this without solid planning and preparation. We need Biblically sound financial plans in place before emergencies strike or tragedy strikes.
Reaching out to a professional with experience in biblical finances is one way you can create a plan that works for your specific situation so that it’s ready when the time comes!
The importance of saving money
Saving money is important in every stage of life. When you’re young, saving for retirement is a huge concern. But, when you’re older it can be just as important to save for medical expenses and the costs of caring for others. You may want to develop a budget or at least have an idea of how much your income is before you spend any money. And don’t forget the importance of paying yourself first after your tithe! There are many different ways to save money. One popular method is to use programs like Acorns to invest your spare change without even realizing it.
Budgeting wisely is the first step to smart financial planning.
The Bible says in Proverbs 22:7 that “The borrower is slave to the lender.” That’s a pretty scary thought, especially if you have a lot of debt. Debt can feel like a never-ending cycle because so much of your money goes towards paying off interest, and not much goes towards paying down your actual debt amount.
It’s important to know where all your money is going so you can see how much you have left for saving or spending on other things. This helps with budgeting wisely and keeping track of what you owe so you don’t forget anything!
Start by tracking your income and expenses for a month or two. After that, create a three-month budget based on that information. Choose categories that are most important to you, and don’t be afraid to cut back on areas that aren’t necessary. Once you’re comfortable with this process, try doing it every quarter if possible! If not, no worries – it may take some time before this becomes second nature.
Debt management and the importance of setting goals
Debt management is a difficult time in many people’s lives. Did you know that the average household owes $145,000? That number is staggering, and there are plenty of ways to get out of debt.
Debt isn’t necessarily a bad thing, though. There are many important reasons to take on debt, such as investing in your education or buying a home. However, it’s essential to set goals and figure out your priorities before taking on any debt.
If you don’t want financial stress weighing you down, make sure you’ve taken care of these things:
-Did you earn enough money this year?
-Are your expenses more than your income?
-Does your income cover all of your expenses?
-Do you have an emergency fund?
-What are the chances of being laid off from work or losing your job?
-Are there any special events coming up this year where more spending will be necessary (i.e., weddings)?
These questions can help you create your plan for next year and determine what steps need to be taken first. Financial planning involves properly analyzing your finances and goals so that they can work for you instead of against you.
Investing for retirement
Investing for retirement can be daunting. It takes a lot of time, patience, and research to invest your money wisely. But, the benefits are worth it.
There are many different things people invest in for retirement. It can be stocks, bonds, or even real estate. The key is understanding what you are investing in and making the right decision based on your goals. One powerful investment tool credentialed ministers have available is a denominational-sponsored 403b plan. You can not only receive a tax deduction for contributions now, but you will also have the opportunity to take distributions tax-free as a housing allowance in retirement.
If you’re saving for retirement, your goal is to have enough money to keep you going through your golden years without too much worry. What would happen if you knew that money wasn’t going to last quite as long as you thought? Do you have plans in place that would account for it?
A Biblically sound financial plan combines a proper biblical perspective and time-tested financial principles. With a Biblically sound financial plan, your family can be provided for and your goals achieved, so get started on financial planning today.