7 Biblical Financial Principles

In this study we examine what the bible says about managing our finances.

[Watch the Video]

1. Have a Plan
2. Save
3. Invest
4. Stay out of debt
5. Live Within Your Means
6. Tithe
7. Give generously

Scriptures

• Luke 16:11
• Genesis 41:29-37
• Proverbs 27:23-24
• Genesis 41:47-49
• Proverbs 13:11
• Genesis 47:14-17
• Ecclesiastes 11:2
• 2 Cor 9:10
• Genesis 47:20 - 24
• Proverbs 22:7  
• Proverbs 12:9
• Philippians 4:12
• Proverbs 3:9-10
• Malachi 3:8-10
• Proverbs 19:17
• Matthew 6:3-4
• 1 Timothy 5:8
• Deuteronomy 8:17-18
• 1 Timothy 6:17-19

Luke 16:11

"Therefore if you have not been faithful in the use of unrighteous wealth, who will entrust the true riches to you?

Jesus talked more about money than He did about heaven or hell

• There are more parables about money than any other subject

The love of money is the root of all evil

• Money in itself isn’t good or bad
• The love of money is bad, but money itself is morally neutral
• Just because you have money doesn't mean you love it
• Just because you love money doesn't mean you have it
• What matters is how you view it and how you use it

Money doesn't change you

• An abundance of money amplifies your character
• It makes you more of what you already were

• If you’re mean it will make you meaner
• If you’re selfish it’ll make you more selfish

Millionaire Survey

7 common traits found from interviewing 1100 millionaires

In their 1996 book The Millionaire Next Door, authors Thomas Stanley and William Danko compile twenty years of research and interviews with "truly" wealthy families of America. Their findings dispel the common perceptions most of us have when we consider how fortunes are amassed in this country.

1. They live well below their means
2. They allocate their time, money, and energy efficiently...in ways conducive to earning wealth
3. They have built their own wealth
4. They believe financial independence is more important than social status
5. Their adult children are now self-sufficient financially
6. They are proficient in targeting the right market opportunity
7. They chose the right occupation/industry

It's hard to talk to some people about prosperity when they're unemployed or in debt.

• Some may not want to hear about being a millionaire when they’re just trying to get to zero
• Trying to get out of debt

7 Biblical Financial Principles

Now we’ll see what the bible says about handling money

1. Have a Plan

 .               If you fail to plan you plan to fail

2. Save

 .               Spend less than you earn

3. Invest

 .               Seed vs Bread

4. Stay out of debt

 .               Get back to zero

5. Live Within Your Means

 .               Act Your Wage

6. Tithe

 .               Give 1/10th to God

7. Give generously

Based on how Joseph managed Egypt

Have a Plan

Genesis 41:29-37

29Seven years of great abundance are coming throughout the land of Egypt, 30but seven years of famine will follow them. Then all the abundance in Egypt will be forgotten, and the famine will ravage the land. 31The abundance in the land will not be remembered, because the famine that follows it will be so severe. 32The reason the dream was given to Pharaoh in two forms is that the matter has been firmly decided by God, and God will do it soon.

33“And now let Pharaoh look for a discerning and wise man and put him in charge of the land of Egypt. 34Let Pharaoh appoint commissioners over the land to take a fifth of the harvest of Egypt during the seven years of abundance. 35They should collect all the food of these good years that are coming and store up the grain under the authority of Pharaoh, to be kept in the cities for food. 36This food should be held in reserve for the country, to be used during the seven years of famine that will come upon Egypt, so that the country may not be ruined by the famine.”

37The plan seemed good to Pharaoh and to all his officials.

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• Pharaoh had a dream of 7 years of prosperity followed by 7 years of famine
• Joseph had the ability to interpret Pharaoh’s dream
• Joseph came up with a plan to survive the famine

Previously God worked with the patriarchs using miracles

• Allowed Sarah, Rebeca and Rachel to conceive supernaturally
• He turned Lot’s wife into a pillar of salt

After this God performed other miracles:

• Parted the Red Sea
• Brought water from a rock

But here God chose not to do anything supernatural

• What did He give Joseph?
• A financial plan

If Joseph would have only interpreted the dream Pharaoh may have only had him in his court of advisors/magi/sorcerers  

•  But because Joseph had a plan, Pharaoh put him in charge of the entire land.
• Similarly we shouldn’t expect God to supernaturally provide for our finances.   
• We need a financial plan

When asked, John D Rockefeller said he was successful because he

• “tithes 10%, saved 10%, and lives off of the other 80%”

Budget

A budget is planned spending

Once you create a budget, you have to follow it

You need to know:

1. what you Own
2. what you Owe
3. what you Earn
4. where/when it Goes

Keep good records

Proverbs 27:23-24

23Be sure you know the condition of your flocks,

give careful attention to your herds;

24for riches do not endure forever,

and a crown is not secure for all generations.

• Know the condition of your flock

All societies use a currency to exchange for goods

• People store up currency for security
• In ancient societies the currency was cattle, livestock and sheep
• The word “stock exchange” comes from the idea of how many cattle you have

Saying “know the condition of your flock” is like saying:

• “Know the condition of your money”
• Keep records

Save

Genesis 41:47-49

47During the seven years of abundance the land produced plentifully. 48Joseph collected all the food produced in those seven years of abundance in Egypt and stored it in the cities. In each city he put the food grown in the fields surrounding it. 49Joseph stored up huge quantities of grain, like the sand of the sea; it was so much that he stopped keeping records because it was beyond measure.

• Joseph’s strategy was to save during the good time
• He saved for the future

Saving is different than investing

• Saving has little or no risk
• Investing is trying to turn $4 into $5
• Saving is holding on to your $4
• Saving comes before investing

Slow and Steady

Proverbs 13:11

Dishonest money dwindles away, but whoever gathers money little by little makes it grow.

• The Hebrew implies building it gradually
• It's not about getting rich quick
• It's not about winning the lottery
• It’s not about marrying somebody who’s rich
• It's not about sowing a large tithe to get a large blessing
• It’s a gradual continuous increase from spending less than you make every month

If you don't learn how to make it you won't know how to manage it

It’s not the amount you save that matters most

• it’s the consistency
• It’s the discipline

Delayed gratification

We need to learn to save for things

• Not get it now and pay later

Average saving (2015):

• Japanese 25%
• European 18%
• Average American spends 1% more than they made

We feel entitled to have what we want right now

Example: kids in the room with the marshmallow

• scored your SAT
• Wealthier

Invest

Genesis 47:14-17

14Joseph collected all the money that was to be found in Egypt and Canaan in payment for the grain they were buying, and he brought it to Pharaoh’s palace. 15When the money of the people of Egypt and Canaan was gone, all Egypt came to Joseph and said, “Give us food. Why should we die before your eyes? Our money is all gone.”

16“Then bring your livestock,” said Joseph. “I will sell you food in exchange for your livestock, since your money is gone.” 17So they brought their livestock to Joseph, and he gave them food in exchange for their horses, their sheep and goats, their cattle and donkeys. And he brought them through that year with food in exchange for all their livestock.

• The people were out of money, so Joseph took their livestock in exchange for food
• We saw that after Joseph had enough money for his needs, he saved it
• Now he is able to diversify into other types of goods

Ecclesiastes 11:2

2Invest in seven ventures, yes, in eight;

you do not know what disaster may come upon the land.

Mix of high and low risk

• Saving and investment

Many people have trouble thinking about and planning  finances

• Example: co-worker copying my 401K investment options
• You may need a professional

Seed vs Bread

2 Cor 9:10

10Now He who supplies seed to the sower and bread for food will supply and multiply your seed for sowing and increase the harvest of your righteousness;

• It says that God supplies the seed to the sower and the bread for food

You eat bread and plant seed

• Seed is for sowing
• Bread is for food
• It's foolish to eat seeds
• It's foolish to plant bread

Bread is for today

• Bread is for personal enjoyment and delight
• God wants you to enjoy today

Seed is for the future

• Farmer's must save some corn to plant for next year
• If you eat your seed you won't have anything to plant next year
• You need to use some seed to invest in the future

Get / Stay Out of Debt

Genesis 47:20 - 24

20So Joseph bought all the land of Egypt for Pharaoh, for every Egyptian sold his field, because the famine was severe upon them. Thus the land became Pharaoh’s. 21As for the people, he removed them to the cities from one end of Egypt’s border to the other. 22Only the land of the priests he did not buy, for the priests had an allotment from Pharaoh, and they lived off the allotment which Pharaoh gave them. Therefore, they did not sell their land. 23Then Joseph said to the people, “Behold, I have today bought you and your land for Pharaoh; now, here is seed for you, and you may sow the land. 24“At the harvest you shall give a fifth to Pharaoh, and four-fifths shall be your own for seed of the field and for your food and for those of your households and as food for your little ones.”

• Joseph bought the people and their land
• They were Pharaoh's slaves
• Now the Egyptians were in debt to Pharoah
• Joseph’s family was in debt to Pharoah
• This is how the Jews became slaves to Egypt

Billionaires say get out of debt

• Warren Buffett

When you're in debt if you do nothing you'll get deeper in debt

You didn’t get in debt overnight, you’re not going to get out of debt overnight

Slave

Proverbs 22:7  

 7The rich rules over the poor,

            And the borrower becomes the lender’s slave.

• The Israelites became slaves to Egypt
• If you borrow you become the slave of the lender
• Some of you are slaves to Chase Bank; others to Wells Fargo, others to Toyota

Why do fast food restaurants put up with credit card fees?

• McDonalds did a study and found that people spend 47% less when they use cash.

It's ok to go backwards in the short term for a long term gain

• college debt

Live Within Your Means

Proverbs 12:9
9 Better to be a nobody and yet have a servant than pretend to be somebody and have no food.

• It’s better to live well than to have people think you are living well
• “Would you rather be rich or look rich”? -M.L.

Story: What is Prosperity?

• poor vs rich vs wealthy

The purpose of prosperity or abundance is for you to honor God and enjoy your life here on earth.  

• It is not to gain social status or impress others.  

Contentment

Philippians 4:12
12I know how to get along with humble means, and I also know how to live in prosperity; in any and every circumstance I have learned the secret of being filled and going hungry, both of having abundance and suffering need.

Learn to be happy with what you have

• Happiness is determined by your response to what you have

Howard Hughes: What it takes to be happy

•  “Just a little bit more”

Return on Investment

Mindset: What's my return on investments vs what's my cost

• pay to secure what I have vs risking

• parking meter vs lottery ticket

Don’t look at it in terms of “how much is my monthly payment”

• “What’s the actual cost?”

A new car is the worst investment

• People say they bought an expensive car because it keeps its value
• It’s a depreciating asset
• Unless it’s a collector’s item
• Or you’re restoring it to sell it

Story: 7K car

• Your bank account determine what you can afford

Story: had to repent for my car

• Sold my investments
• Debt free comes before investing

Tithing

Proverbs 3:9-10
 9Honor the LORD from your wealth

            And from the first of all your produce;

      10So your barns will be filled with plenty

            And your vats will overflow with new wine.

• Pay your tithe first
• Honor God first
• This is the promise of tithing

Tithing is not from the law

• The tithe was taking place 400 years before Moses
• It's from Abraham
• The word “tithe” means 1/10th

Malachi 3:8-10

8“Will a man rob God? Yet you are robbing Me! But you say, ‘How have we robbed You?’ In tithes and offerings. 9“You are cursed with a curse, for you are robbing Me, the whole nation of you! 10“Bring the whole tithe into the storehouse, so that there may be food in My house, and test Me now in this,” says the LORD of hosts, “if I will not open for you the windows of heaven and pour out for you a blessing until it overflows.

• Not tithing is robbing God
• Tithing is the only place where God says to test Him
• Tithing is linked to blessings

Example: tithing when in college

We don’t want to base our giving on what we want to get back.

• The tithing plate is your slot machine
• We tithe because we trust that God will provide
• We tithe because it is God’s

Giving

We should be giving to the poor

• Not talking about tithing:
• “That’s just not stealing”  
• --Michael Jr.

Giving by the Spirit

Two type of giving:

1. Giving by the word
2. Giving by the spirit

Giving by the word = the tithe

Giving by the spirit is supporting causes.and giving to those in need

• Listen to the Holy Spirit

Proverbs 19:17

17 One who is gracious to a poor man lends to the LORD, And He will repay him for his good deed.

• If you give to the poor God owes you
• This isn’t just for the righteous or just for Christians
• God takes on the debt of the poor

Christian and non-Christian billionaires talk about the importance of giving

Matthew 6:3-4
But when you give to the poor, do not let your left hand know what your right hand is doing, so that your giving will be in secret; and your Father who sees what is done in secret will reward you.

• Don’t give to get recognition
• Don’t brag about helping people or donating

Give to Your Family

1 Timothy 5:8
8But if anyone does not provide for his own, and especially for those of his household, he has denied the faith and is worse than an unbeliever.

• Support your family first
• Let the Holy Spirit lead you to know when you’re enabling someone’s lifestyle

Conclusion

In summary, the question isn't

• “Is this purse too expensive” or “is this car too expensive”

The question is:

• Did you tithe 10%?
• Are you saving and investing for the future?
• Are you debt free?
• Are you giving to others as the Spirit leads you?

Once you can answer yes to all of those then nothing is too expensive.

• Until you can answer yes to all of those then everything is too expensive

Deuteronomy 8:17-18

17You may say to yourself, “My power and the strength of my hands have produced this wealth for me.” 18But remember the Lord your God, for it is he who gives you the ability to produce wealth, and so confirms his covenant, which he swore to your ancestors, as it is today.

• God gives us the ability to make money
• Remember God is your source

We need to remember that it all belongs to God

• God owns our money

Whatever you want God to bless put him first in it

• Relationship
• Marriage
• Business
• Career
• Finances
• Time

The ultimate money management decision tool:

• "God what would you have me do?"

We want to

• be stewards of what God has given us
• plan for our financial future
• plan for our earthly future

But this isn’t more important than storing up our treasures in Heaven

1 Timothy 6:17-19

17 Instruct those who are rich in this present world not to be conceited or to fix their hope on the uncertainty of riches, but on God, who richly supplies us with all things to enjoy.
18 Instruct them to do good, to be rich in good works, to be generous and ready to share,
19 storing up for themselves the treasure of a good foundation for the future, so that they may take hold of that which is life indeed.

• Paul instructs us to:
• do good
• be rich in good works
• be generous and ready to share
• In order to store up treasures for the future

We want to:

• Enjoy what God has given us
• Be good stewards of what God has provided

But our ultimate goal is to prepare for our eternal future

Presenter: Michael Leadon 

References

Understanding the Key to Kingdom Prosperity

-- Myles Munroe

The 7 Factors of Wealth

http://www.mdmproofing.com/iym/7factors.html

How To Build A Strong Financial Foundation with Rick Warren

https://www.youtube.com/watch?v=dTTi_phcLMU&list=PLPV0C7zItnS6Jkxi4IWt5-99UmLhNMoyj

Proven Biblical Money Principles - Dave Ramsey

https://www.youtube.com/watch?v=OC_6WqXA1ps

How To Build A Strong Financial Foundation with Rick Warren

https://www.youtube.com/watch?v=dTTi_phcLMU&list=PLPV0C7zItnS6Jkxi4IWt5-99UmLhNMoyj

Extra

There are natural laws and there are spiritual law
Wisdom and favor with the slaw
Will Smith and Oprah will align you with the natural law
The book of Proverbs will align you with the spiritual all

Love of Money

Ecclesiastes 5:10    
 10He who loves money will not be satisfied with money, nor he who loves abundance with its income. This too is vanity.

What is Money

In our country we value gold

• In heaven the streets are paved in gold
• Different countries have different value systems
• We are supposed to store up our treasures in Heaven
• But it’s also wise to store something while here on earth

Stay Out if Debt

Get to Zero

For Some people going from where they are to being a millionaire means passing through zero first

• Get out of debt

Romans 13:8 ESV

Owe no one anything, except to love each other, for the one who loves another has fulfilled the law.

Proverbs 22:26-27
26Do not be one who shakes hands in pledge

or puts up security for debts;

27if you lack the means to pay,

your very bed will be snatched from under you.

Ecclesiastes 5:5
It is better that you should not vow than that you should vow and not pay.

Usury is a sin

Deuteronomy 23:19-20

19“You shall not charge interest to your countrymen: interest on money, food, or anything that may be loaned at interest. 20“You may charge interest to a foreigner, but to your countrymen you shall not charge interest, so that the LORD your God may bless you in all that you undertake in the land which you are about to enter to possess.

Righteous Money

Proverbs 16:8
Better is a little with righteousness than great income with injustice.

Live Within Your Means

1 Tim 6:8
6 But godliness actually is a means of great gain when accompanied by contentment.

Usury

Usury - the lending of money with an interest charge for its use; especially : the lending of money at exorbitant interest rates

Exodus 22:25

25“If you lend money to My people, to the poor among you, you are not to act as a creditor to him; you shall not charge him interest.

Usery is the worldly ways of making prosperity. And to do so it's considered unjust.

The only type of Usery that is considered acceptable is when we lend to God.  

• We lend to God when we give to the poor.  

More Money More Problems

Proverbs 14:14

4 Where no oxen are, the manger is clean, But much revenue comes by the strength of the ox.

Ecclesiastes 5:10-12

10He who loves money will not be satisfied with money, nor he who loves abundance with its income. This too is vanity. 11When good things increase, those who consume them increase. So what is the advantage to their owners except to look on? 12The sleep of the working man is pleasant, whether he eats little or much; but the full stomach of the rich man does not allow him to sleep.

Giving

Proverbs 22:9
He who is generous will be blessed, for he gives some of his food to the poor.

Psalm 37:21  
21The wicked borrow and do not repay,

but the righteous give generously;

• Notice it doesn't say: “ The righteous borrows and pays back”
• There is a negative connection to being in debt

Proverbs 28:27
He who gives to the poor will never want, but he who shuts his eyes will have many curses.

• If you ignore poor people you will be cursed
• If you give to poor people you won’t become poor

Producing is Generosity

Proverbs 11:24-26

     24There is one who scatters, and yet increases all the more,
            And there is one who withholds what is justly due, and yet it results only in want.
      25The generous man will be prosperous,
            And he who waters will himself be watered.
      26He who withholds grain, the people will curse him,
            But blessing will be on the head of him who sells it.

• He who is generous will get more
• Being a producer brings blessings
• It's better to sell it than to hoard it

Remember in those days there weren't any supermarkets

• You had to either produce it or know someone who did

God blesses those who use their labor to benefit others

We receive an affirmation from giving

Blessings for Givers

Nowhere in the bible does it say lack or need qualifies someone to receive blessings from God.

• All of the promises are for provision, blessings and prosperity are connected to giving.

You are either a giver or a taker

• If you are not a giver you are a taker.   
• Being a taker has nothing to do with what you have.
• You don’t have to be wealthy to be giver.  
• It’s a matter of the heart.

You can be the giver or you can give money to the giver..be the one who enables the giver.

Tithing

Deuteronomy 14:22-27

22Be sure to set aside a tenth of all that your fields produce each year. 23Eat the tithe of your grain, new wine and olive oil, and the firstborn of your herds and flocks in the presence of the Lord your God at the place he will choose as a dwelling for his Name, so that you may learn to revere the Lord your God always. 24But if that place is too distant and you have been blessed by the Lord your God and cannot carry your tithe (because the place where the Lord will choose to put his Name is so far away), 25then exchange your tithe for silver, and take the silver with you and go to the place the Lord your God will choose. 26Use the silver to buy whatever you like: cattle, sheep, wine or other fermented drink, or anything you wish. Then you and your household shall eat there in the presence of the Lord your God and rejoice. 27And do not neglect the Levites living in your towns, for they have no allotment or inheritance of their own.