‘If you will live like no one else, later you can live like no one else.’ This quote covers every page of the book titled ‘The Total Money Makeover’ by Dave Ramsey. If you haven’t heard about Dave Ramsey before I recommend for you to look him up. In my search for the answer to the question: ‘How does God wants us to manage our money,’ I stumbled upon his book. And I must say, I’m a huge fan. He has a step-by-step plan for everyone to follow in order to gain financial freedom.
I’m going on a diet to gain financial freedom. I’m done with always having more month left than money. How can this be when I am earning a bit more money each year without any significant changes in my life? I am truly fed up with my current financial situation. I have never been so determined concerning our financial situation. What does the Bible actually teaches about money management? I discovered that there are a lot of scriptures in the Bible about money. The answer is in the book and I have discovered a big secret. Read more to discover the secret.
The Bible & Money
Have you ever imagined a life where money is no longer an issue? That your money will work harder for you than you do for yourself? I surely haven’t imagined such a thing. I was under the assumption that I had to work hard until I would retire. However, after reading the Biblical explanation on money management my beliefs have changed. There are a lot of scriptures in the Bible about money. I am talking about thousands of scriptures.
There is so much money we make in a lifetime (on average € 2 million per person!). Even if you are living from a minimum income, average income or high income. It really doesn’t matter. I learned that I don’t have to wait on a high salary in order to be financially fit. Each year I’m earning a bit more money, but my financial problems haven’t changed a bit. In order to get financially fit a change of my mindset is required. It all has to do with your mentality towards money. It’s a mentality that our children should learn at school. Yet, we learn our children mathematics they will never use a day in their life. I would like to share a few scriptures that shifted my mindset concerning money management.
Whatever you do, work heartily, as for the Lord and not for men, knowing that from the Lord you will receive the inheritance as your reward. You are serving the Lord Christ (Colossians 3:23-24 ESV).
I know that there is nothing better for them than to rejoice and to do good in one’s lifetime; moreover, that every man who eats and drinks sees good in all his labor – it is the gift of God (Ecclesiastes 3:12-13 NASB).
Let him who stole steal no longer, but rather let him labor, working with his hands what is good, that he may have something to give him who has need (Ephesians 4:28 NKJV).
Make it your goal to live a quiet life, minding your own business and working with your hands, just as we instructed you before (1 Thessalonians 4:11 NLT).
All the believers were one in heart and mind. No one claimed that any of his possessions was his own, but they shared everything they had. With great power the apostles continued to testify to the resurrection of the Lord Jesus and much grace was upon them all. There were no needy persons among them. For from time to time those who owned lands or houses sold them, brought the money from the sales and put it at the apostles’ feet, and it was distributed to anyone as he had need (Acts 4:32-35).’
Money no longer dominated the believers. The story tells us that money had to bow and become slave to the Kingdom of God. We need to rule over our money and not the other way around.
Jesus taught, “That is why I tell you not to worry about everyday life—whether you have enough food and drink, or enough clothes to wear. Isn’t life more than food, and your body more than clothing? Look at the birds. They don’t plant or harvest or store food in barns, for your heavenly Father feeds them. And aren’t you far more valuable to him than they are? Can all your worries add a single moment to your life? “And why worry about your clothing? Look at the lilies of the field and how they grow. They don’t work or make their clothing, yet Solomon in all his glory was not dressed as beautifully as they are. And if God cares so wonderfully for wildflowers that are here today and thrown into the fire tomorrow, he will certainly care for you. Why do you have so little faith? “So don’t worry about these things, saying, ‘What will we eat? What will we drink? What will we wear?’ These things dominate the thoughts of unbelievers, but your heavenly Father already knows all your needs. Seek the Kingdom of God above all else, and live righteously, and he will give you everything you need. “So don’t worry about tomorrow, for tomorrow will bring its own worries. Today’s trouble is enough for today (Matthew 6:25-34 NLT).”
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 NIV).”
It is the ‘love’ of money that will ruin your life. Don’t love money but figure out how money can work for you. Money in itself is neutral, it’s about what you do with it (also loving) which will determine whether it’s good or bad. There is a big difference between loving money and having it and using it without loving it. This in itself is a study ‘the love of money.’
A bishop then must be blameless, the husband of one wife, temperate, sober-minded, of good behavior, hospitable, able to teach; not given to wine, not violent, not greedy for money, but gentle, not quarrelsome, not covetous (1 Timothy 3:2-3 NKJV).
A prudent person foresees danger and takes precautions. The simpleton goes blindly on and suffers the consequences (Proverbs 22:3; 27:12 NLT).
By preparing yourself for financial needs in the future by saving money you will prevent money problems later. Money is a defense. With the right amount of money you will be able to pay for more representatives, a better hospital and the transportation needed to get your job done. Therefore, man have a strong desire to bring money home to their families. With their money they want to defend their household. Let’s start defending ourselves by learning how to use this defense mechanism.
A good person leaves an inheritance for their children’s children, but a sinner’s wealth is stored up for the righteous (Proverbs 13:22 NIV).
It’s stupid to guarantee someone else’s loan (Proverbs 17: 18 CEV). If you truly want to help someone give money. If you don’ have it, then don’t sign up to pay it for them.
The rich rule over the poor and the borrower is slave to the lender (Proverbs 22:7 NIV).
God Showed obvious disdain for debt. God shows that loans can get messy and ruin your relationship due to bondage to the lender. Therefore, God gives guidelines to lending money. In my personal opinion it is best to have no debt by all cause to prevent a life of slavery.
Give, and you will receive. Your gift will return to you in full – pressed down, shaken together to make room for more, running over, and poured into your lap. The amount you give will determine the amount you get back (Luke 6:38 NLT).
Remember this – a farmer who plants only a few seeds will get a small crop. But the one who plants generously will get a generous crop. You must each decide in your heart how much to give. And don’t give reluctantly or in response to pressure. “For God loves a person who gives cheerfully.” And God will generously provide all you need. Then you will always have everything you need and plenty left over to share with other (2 Corinthians 9:6-8 NLT).
Honesty
In order to reach a point of financial freedom I needed to be honest about the current financial situation in my own household. For example the way we think about debt. The only good way to think about debt is this: no debt = the only good debt. I discovered a big secret: the problem was ME! My way of spending, my (non-existing) budget, my lifestyle choices and my lack of knowledge about financial growth. The main reason why money was not working for me has to do with me, myself and I (and my husband ofcourse).
We should be honest about our lifestyle choices (cars, clothing, restaurants, holidays, fancy stuff, going out, gifts, groceries etcetera). The lifestyle we live keeps us stuck in the way we manage our money. To be financially independent we should lower our standard of living so that later we can live like no else. We will need to stop keeping up with the Joneses. To be more specific for me this will mean: no more shopping for new clothing, shoes, bags and accessories, no more regular visits to my favorite restaurants and no expensive travels for at least a year or two. I must admit, I like these things a lot (a lot, lot…). So, it won’t be easy for me. For example I’m still thinking about the high knees boots I saw on sale a few months ago. I am fighting the urge not to buy those shoes online. I really need God’s help to change my bad habits (e.g. shopping spreads).
Lastly, we should be honest about the vision we have for our life. Envision yourself debt-free with minimum costs of living. Our ultimate goal is choice. At the end of our financial fit journey we will have the ability to choose what we want to do with our day and we will no longer be forced to do things for the wrong reasons (e.g. money). We weren’t called to make a living. Let us make room so that we can answer our God given calling.
I believe that money won’t satisfy us. The only satisfaction in life is to be with God. Therefore, I no longer want my reason to get up in the morning and go to work to be about money. I am striving for getting up in the morning to achieve my God given purpose.
After looking honestly in the mirror and willing to change my bad habits, me and my husband started with a zero-based budget each month by using Microsoft Excel. We needed to know where every cent comes in and goes out. No money will vanish. We are now the one who decide where our money will go. And now that we have made up our minds, our money will go where it needs to go and financial growth will follow. This will enable us to give cheerfully.
Step-by-step plan
Having our zero-based budgetting in place, without having back payments, took our household a few months. We will now follow the steps as mentioned by Dave Ramsey in ‘The Total Money Makeover’.
- 1. Starter emergency fund – Save EUR 1.000 fast
- 2. Paying of all debt (except for the mortgage) – Start with the smallest debt first and work your way up
- 3. Fully funded emergency fund – Save 3-6 months of expenses
- 4. Invest – Retirement should be 15% of your income, college funds for the children and mutual funds
- 5. Tackle that mortgage! – Pay off your home early with every penny you have left (max. 15 years)
- 6. Give & have fun! – Your money will eventually work harder than you do. You can now choose to stay at your job or spend time doing anything else
At the last step (which will take approximately 6-15 years to reach) we will no longer be forced to work for money. We can choose to go to our job if we like to or we can do anything else God puts in our hearts to do. Money will be a defense mechanism, a tool to protect ourselves and to reach certain goals. Our life on earth shouldn’t be controlled by a piece of paper. God is in control and as the Bible tells us He wants us to be prudent with our money.
Tip: Next to ‘The Total Money Makeover’ by Dave Ramsey I recommend to read ‘Rediscovering the Kingdom: Ancient hope for our 21st century world’ by Myles Munroe & ‘Everything the Bible says about money’ by Lin Johnson.