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I began my financial journey years back after attending a Financial Peace University course by Dave Ramsey. These courses, although open to everyone (and very helpful to all!) are rooted in Christianity.
It was transformative and I’ve used scripture throughout my journey to debt freedom to stay motivated! However, do you know what the Bible says about wealth and prosperity? What guidance does the Bible give about money?
In this article I will discuss 5 powerful money tips that are taught by the Bible regarding money. These tips are foundational and are the basis of many financial books and courses!
Here are 5 key principles from the Bible about money:
- Get Out of Debt
- Live Within Your Means
- Spend Your Money Wisely
- Plan for the Future
- Give to Others
1. Get Out of Debt
The wicked borrows but does not pay back, but the righteous is generous and gives. (Psalm 37:21)
No matter your views, being in debt isn’t fun.
I personally have been battling $50,000 of student loan debt from getting my doctorate, and it seems to be taking forever.
Debt makes us unable to thrive in life. We have to keep paying this endless debt – rather than using that money for growth, investing in our future, and giving to others.
Here are a few important tips to get out of debt!
Start an Emergency Fund
An emergency fund is a small amount of cash you keep in an account for emergencies! For example, if you break your arm, a tire blows out, or a refrigerator goes out, what money would you use?
A typical emergency fund is a minimum of $1,000 but you should end up having 3-6 months of money saved up for emergencies.
What would happen if you lost your job? It could take months to get a new job. Then, what if a major emergency occurs when you’re still unemployed? An emergency fund is the answer to stay out of financial emergencies.
Track Your Net Worth
Net worth is a combination of all your assets and liabilities. For example, this would include your liquid cash, student debt, credit card debt, mortgages, and every other income or debt you have to your name.
You may be surprised at how much “in the negative” you are once you add up all your loans, debt, and liabilities!
Be sure to check out these helpful articles to get out of debt and grow wealth!
2. Live Within Your Means
It is He who gives you power to get wealth (Deuteronomy 8:18)
If you have read Dave Ramsey’s Total Money Makeover, you’ll recognize the phrase: “Live today like no one else so tomorrow you can live like no one else”.
It’s a powerful quote that lays the foundation for budgeting, saving money, and growing wealth.
Wouldn’t it be nice to actually enjoy your day-to-day life? To be able to go on spontaneous vacations, to give large tips at restaurants, and to help fund nonprofits that you love?
This quote provides a purpose behind paying off debt, investing, and saving cash for your future. However, how can you get to the point where you can live your life how you would like?
Living within your means is a very critical part of getting out of debt and achieving your financial goals. Some people may feel frustrated that the way to get through their financial journey is by giving up some of their luxuries.
However, always remember that Philippians 4:19 states that God will supply your needs!
This important topic of not overspending is taught frequently within the debt free community. This includes “keeping up with the Joneses”!
Truly one of the easiest actions you can take is living below your means!
To live below your means, you do not overspend what you earn. In fact, it should be a priority to save money!
Keep this in mind: You cannot serve God and money. (Matthew 6:24)
Are you trying to live to “look” wealthy in order to prove yourself to your friends or your social media followers? Who are you actually serving? The world or the Lord?
Need more cash? Be sure to learn these 7 unique ways to save up to $50 every day!
3. Spend Your Money Wisely
For which of you, desiring to build a tower, does not first sit down and count the cost, whether he has enough to complete it? (Luke 14:28)
We’ve all heard “money is the root of all evil”. It’s a phrase that can be taken out of context, but I think what’s most important is what is taught in Ecclesiastes 5:10.
Loving money can be dangerous! It can become selfish and you can begin to neglect other parts of your life – your relationships, family, health, etc.
I have seen too many people who choose to spend their paycheck on motorcycles, clothes, makeup, and other personal items. Then, they realize that they have no money to save, and no money to invest for their future.
To combat this, there are unlimited resources out there to help you budget and spend your money wisely!
Here are some examples to spend your money more wisely:
- Use these 5 critical tips to get the most out of your budget
- Avoid these 10 money mistakes in your 20’s and save cash the rest of your life!
4. Plan for the Future
The plans of the diligent lead to profit as surely as haste leads to poverty. (Proverbs 21:5)
Investing is important to enjoy your years in retirement! Many people get a headstart with investing and are able to retire in their 40’s or before!
What does the bible say about investing?
Money is written about very frequently in the bible. Thankfully, there is also plenty of guidance about investing as well!
One of my favorite places to look is in Proverbs. There are multiple tips in this book that can help you realize the how to invest. For example, it is best to earn and invest money little by little rather than have dishonest money. (Proverbs 13:11)
It is also written that it is important to do your research and be diligent with your finances, rather an being haste. (Proverbs 21:5)
To begin your journey into learning about investing, be sure to check out these articles!
- Learn about our current economic market and how it can affect your future investments!
- Discover how investing in index funds can be the best for beginners!
Investing early can make the difference of having a million dollars more than your peers. It takes diligence and effort, but can easily be done – no finance degree required!
My husband and I have taught ourselves how to invest, and we even have gotten into rental investing! Check out the story of our first property here!
Thing is, the Bible teaches us to be smart with our money, to let it grow, and to use it for good things. Investing is an important part of this equation!
5. Give to Others
“Thus, when you give to the needy, sound no trumpet before you, as the hypocrites do in the synagogues and in the streets, that they may be praised by others.” (Matthew 6:1-4)
Giving back to others is an important topic when discussing Biblical principles about money.
As discussed above, there plenty of instances where the Bible states to be careful with your money, to not be greedy, and to not become obsessed with money. To add to this, 2 Corinthians 9:6–7 states that God loves a cheerful giver!
If you are someone who believes that the Lord provides you financial opportunities to grow prosperity and abundance, keep Proverbs 3:9 in mind! It reminds us to “honor the Lord with your wealth, with the firstfruits of all your crops.”
So, what does this mean? How should you give?
There are plenty of ways to use your finances to help others, here are some examples!
- Buy groceries for an elderly neighbor
- Purchase Christmas gifts for a family with limited finances
- Tithe to your local church
- Buy diapers for a new mother
Many financial books teach that being able to give to others should be an end goal of yours. As in, it is critical to get control over your finances, get out of debt, grow abundance, and then be able to give to others!