10 FINANCIAL PRINCIPLES
God is the Source
The first principle is that God is the source of everything. Philippians 4:19 says, “My God shall supply all your need according to his riches in glory by Christ Jesus.” Proverbs 8:20,21 adds, “I lead in the way of righteousness, in the midst of the paths of judgment: that I may cause those that love me to inherit substance; and I will fill their treasures.” And 2 Corinthians 9:8 says: “And God is able to make all grace abound toward you; that ye, always having all sufficiency in all things, may abound to every good work.” Whenever we need money or possessions, prayer is the answer. Look to the Lord, because He will provide it-according to His will.
The second principle is that of giving. Luke 6:38, a key verse, says, “Give, and it shall be given unto you; good measure, pressed down, and shaken together, and running over, shall men give unto your bosom. For with the same measure that ye mete withal it shall be measured to you again.” According to Deuteronomy 14:23, one purpose of tithing was to teach the people of Israel to put God first in their lives. Commit a tenth of your income-right off the top-to the Lord’s work. Proverbs 3:9, reads: “Honour the Lord with thy substance, and with the firstfruits of all thine increase: so shall thy barns be filled with plenty, and thy presses shall burst with new wine.”
Live On Margin
The third principle is that of living on a margin. Everyone ought to live on a margin-a physical margin, a spiritual margin, a time margin and a financial margin. Living on a margin simply means allowing room for things to happen.
Bible Backs Saving
The fourth financial principle concerns saving money-setting something aside for a rainy day. Proverbs 21:20 says, “There is treasure to be desired and oil in the dwelling of the wise; but a foolish man spendeth it up.” And Proverbs 22:3 emphasizes, “A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.”
Keep Out of Debt
The fifth principle is to keep out of unnecessary debt and thus avoid the debt trap. Borrowing for a house or car is one thing but taking on financial obligations one can’t keep-buying beyond the ability to pay-is another. Psalm 37:21 says “the wicked borroweth, and payeth not again.” The minute a person goes into debt, he loses a portion of his freedom. As Proverbs 22:7 says, “The rich ruleth over the poor, and the borrower is servant to the lender.”
Secret of Contentment
The sixth principle is being content with what one has. Hebrews 13:5 puts it succinctly: “Let your conversation be without covetousness; and be content with such things as ye have: for he hath said, I will never leave thee, nor forsake thee.”
A worthwhile saying to remember on contentment is this: “Use it up, wear it out, make it do, do without.”
Keep Records, Budget
The seventh principle is that of keeping records and making a budget. God’s Word says, “Buy the truth, and sell it not; also wisdom, and instruction, and understanding” (Prov. 23:23). “Through wisdom is an house builded; and by understanding it is established: and by knowledge shall the chambers be filled with all precious and pleasant riches” (24:3,4).
The eighth principle is, don’t cosign. God says in Proverbs 27:13 to exercise extreme caution in cosigning. The advice infers that the world’s poorest credit risk is the man who agrees to pay a stranger’s debt. When a person cosigns a note, he is the one who is really borrowing the money. The reason a person needs a cosigner is because the lender is unwilling to lend that money to the person requesting the loan.
The ninth principle is that of hard work. The Scriptures spell it out: “In all labour there is profit: but the talk of the lips tendeth only to penury [poverty]” (Prov. 14:23). “He that tilleth his land shall have plenty of bread: but he that followeth after vain persons shall have poverty enough” (28:19
Seek Godly Counsel
The last principle is that of seeking godly counsel. Psalm 1:1 declares, “Blessed is the man that walketh not in the counsel of the ungodly.” A person needing financial advice should not go to someone who makes his living selling the very thing he’s contemplating buying. “Without counsel purposes are disappointed: but in the multitude of counsellors they are established” (Prov. 15:22).