If you think about it, many of us were taught how to make money, but nobody taught us how to manage the money we make. Most people spend 12-16 years in school learning how to earn a living, but little or no time at all learning how to manage the money we make. Fortunately for us, Solomon was the king of Israel and incredibly rich. God had him write his principles for successful money management down in a book called “Proverbs.” If you want a good financial game plan, you have to include these four priceless principles.
Keep Good Records – The Principle of Accounting
If you are the person who says, “I just don’t know where all the money goes!” you are probably in trouble already because you are violating the principle of accounting.
Proverbs 27:23-24 Riches can disappear fast. So watch your business interests closely. Know the state of your flocks and herds.
When Solomon wrote this several thousand years ago, most people’s assets were tied up in either sheep, goats, or both. He said, “I want you to know the condition of your flocks.” Today he’d say, “Know the condition of your stocks, know what’s in your saving and bank account, and know how your 401k is doing.” The starting point for financial success is keeping good records.
Plan Your Spending – The Principle of Budgeting
A budget is telling your money where you want it to go, rather than wondering where it went. Financial success is not based on how much you make, but how much you save. Financial victory comes not from making more but from spending less.
[Related Series: Budgeting Workshop]
Proverbs 21:20 Stupid people spend their money as fast as they get it.
This verse is God’s IQ test. So how smart are you?
Save for the Future – The Principle of Prosperity
Did you know that the average family in Japan saves about 20% of their income, and the average family in Europe saves about 18%? In the United States, we spend 1% more than we earn. Something isn’t working for Americans. We are violating a priceless principle.
Proverbs 6:8 Ants know how to store up food in the summer so they’re ready for the winter.
[Related: How to Become a Successful Money Manager]
Solomon’s saying that even a creature with an ant-sized brain can figure out that it needs to save. How about us?
Give Back to God – The Principle of Generosity
Have you ever considered the reality that you wouldn’t have anything without the generosity of God?
James 1:17 (MSG) Every desirable and beneficial gift comes out of heaven…
Think about it – you wouldn’t be alive, breathing, walking, sleeping; have a car, bike, house, apartment, food, music, flowers, trees, mountains, money, jewelry, friends, family; feel joy, laughter, love, forgiveness, mercy, or anything – if it weren’t for God’s generous giving to you.
And what does God ask in return? That you demonstrate thankfulness and gratefulness by being generous back to him.
1 Corinthians 16:2 (NET) On the first day of the week, each of you should set aside some income and save it to the extent that God has blessed you…
[Related: A Giving Challenge for Christians]
Why does he want us to do that? God doesn’t need it. God has and owns everything. God doesn’t need your money. So why does he ask us to give to him? Giving to God is an act of gratitude. It’s saying, “God, I wouldn’t have anything if it weren’t for you. So in gratitude I give it back to you.” It’s an act of priority. “God, I want you to be number one in my life and I’ll prove it by putting you first with my money.” Giving to God is a statement of trust. For these principles to work, you have to do all four principles and decide to trust God and his financial game plan.
