Developing A Financial Plan With God At The Center
Managing money God's way requires intention, discipline, and faithful stewardship. Taking a Biblical perspective on money can help advance a family's well-being, future, and the Kingdom of God.
We work for money, save money, spend money, stress about money, and give money away. We even manage to invest a little money for the future.
It's no secret, money can impact many areas of our life. How we choose to manage and handle it can make a big difference.
The Bible has a surprising amount to say about money. About 2,300 verses address wealth, debt, or possessions. Jesus devoted roughly 15% of His preaching to this topic, and He told 11 parables about money. Often, Jesus used money as an illustration of a spiritual principle, probably because He knew how much of life centers around the topic.
Clearly, how we manage our money matters to God. What does it take to develop a financial plan with God at the center?
What Is Biblical Financial Planning?
As Christians, we are stewards of all that God has given us. We are required to use our resources wisely and honorably — not only meeting our current needs but also thinking about those around us and the future.
Christian financial planning asks what we want from life in terms of material goods, health, relationships, joys, and opportunities. It also explores how much money is needed for goals, such as retirement, your desired lifestyle, and how to manage finances within your personal limitations and moral boundaries. It tries to answer the question of “How would God have me spend these resources?”
Biblical wisdom can be helpful when managing money, building financial security, and developing a financial plan. So let's look at what scripture has to say about money:
Hebrews 13:5 says "Keep your lives free from the love of money and be content with what you have." For many people, this verse means enjoying what you have without going into debt or risking too much in the pursuit of wealth.
In Philippians 4:6, Paul advises the followers of Jesus, "Do not worry about anything but pray and ask God for everything you need." In other words, we can trust God to provide for our needs as we are faithful to do our part.
Proverbs 21:20, “In the house of the wise are stores of choice food and oil, but a fool devours all he has.”
Above all else, if you’re Christian, Christian financial planning centers on following Jesus Christ as a guide.
What did Jesus Say About Money?
Jesus often spoke about money and possessions and how His followers should use them.
Most famously, Jesus said, "No one can serve two masters: either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve both God and Money." (Matthew 6:24)
Many people are familiar with that one verse, but Jesus didn't stop his teachings on money there. He frequently expounded His low view of greed, hoarding, and worrying about money.
Jesus once said, "Where your treasure is, there your heart will be also” (Luke 12:34). Many Christians have misquoted this verse — and others like it — to say that your treasure follows your heart. In fact, Jesus said your heart follows your treasure. He did not admonish His followers to abandon sound financial principles. Instead, he urged them to view how they spent their money as a barometer for the state of their hearts.
Does your checkbook reveal a generous heart or a greedy one?
What Does God Say About Investing Money?
God has more than 2,000 things to say about money, including how to invest it. Here are a few principles of Christian financial stewardship, drawn from scripture, to keep in mind:
Invest for a reason: Investing should be goal directed. We should not store piles of money for no particular reason, nor should we place our trust or security in that money (Matthew 6:19-24 and 1 Timothy 6:17-19).
Invest for the future: It is not only morally acceptable, but it is also imperative to set aside funds for emergencies, to make investments, to prepare for our futures, and provide ongoing relief and protection for those in need (Proverbs 21:5).
Don't be led by greed: It is a sin to covet your neighbor's goods (Exodus 20:17). Do not let your own selfish desires of getting rich or a “keeping up with the Jones” mentality become the focus of your investment decisions. In contrast to covetousness, God's followers are commanded to bless the poor and not take advantage of others, especially people who live with less. (1 Timothy 6:9, Proverbs 22:9)
Be generous with what you earn from your investments: As with any type of income, do not make it your goal to collect more than you can use, forgetting about compassion and generosity toward others (2 Corinthians 9:8-9). Set a goal for how much is enough and consider what you will do with the excess.
Principles of Christian Financial Planning
With scriptural background, Christian financial planning demands more than just socking away money in accounts where it will grow. People of faith also want to live meaningful lives to the glory of God. Money management plays a central role in a meaningful life.
The principles of sound Christian financial planning incorporate spending less than you earn, saving responsibly, eliminating debt, investing in long-term income-producing vehicles, and building an emergency fund.
Here are some practical ways to create a financial plan with God at the center:
Set Clear Goals
Why do you need to set clear goals for money management? Why is a financial plan necessary?
For Christians goals are based on faith and following God's leading, not on past accomplishments or current resources. A goal is a statement of God’s will or purpose for our lives.
Without clear goals or any guidance as to what specifically needs funding on a day-to-day basis, you can find yourself at the mercy of outside forces. When you understand the end goal, however, it becomes much easier to make informed decisions about where your money should go.
Spend Less Than You Earn
It is important to spend less than you earn. Too much debt can result in high monthly payments, which inhibit your ability to give generously, invest wisely, or save for emergencies and retirement.
Too often the culprit behind a major financial crisis is not really understanding your expenses and what's driving them.
It is important that we balance saving money for the long term with taking care of ourselves and our families' immediate needs. Keep in mind, wants and needs are two different things. One way to gain a better understanding of your spending is by living on a budget. Budgeting doesn't have to be difficult. It can just be putting everything on paper so you know where your money is going at the end of the month.
Avoid Debt
“The rich rules over the poor, and the borrower is a slave of the lender." (Proverbs 22:7)
According to this proverb, a chunk of the American population is enslaved to a lender. They have a responsibility and commitment to repay what is owed. According to a Pew Charitable Trusts report, 47% of Baby Boomers incurred mortgage debt, 41% carry credit card debt, 36% make car payments, and 13% hold educational loans.
Avoiding debt can help keep you on track and protect your assets, such as a house or a car. It also frees up your financial resources for the future. When developing a financial plan with God at the center, it is often important to avoid borrowing when you can.
Live Generously
Live and give generously. Don't let money control you or your family.
“Giving is the antidote for selfishness,” says author Dave Ramsey in his book The Legacy Journey. “It’s the hallmark character quality of those who win with money.”
When you have amassed enough wealth to care for yourself and your family, then be content with what you have. Contentment often precedes generosity. You can express a generous spirit through charitable contributions, financial gifts to family members, or donating your time and talents to help others.
Read more about the five principles of Christian financial planning that you can apply to your daily money management habits.
What Is a Christian Financial Planner?
A Christian financial planner is a qualified professional who advises clients from a faith-based perspective and often integrates scripture and prayer into their work. A Christian financial planner's top priorities include stewardship, prudence, and faithfulness.
At Cooke Wealth Management, our clients are more than just names on a ledger. They're an extension of our family. And when things get difficult financially for them, it's our job to make sure that we act as both guides and comforters. So when we offer advice, it's not just about showing our clients the best way forward financially. We also understand the importance of addressing how financial plans affect our clients relationally, emotionally, and spiritually.
Do You Need a Christian Financial Planner?
The first thing any Christian looking to create a long-term plan should do is examine their relationship with money. This doesn't necessarily mean that every single detail needs to be disclosed when beginning discussions with a Christian financial planner but they should at least be aware of how money affects you emotionally and spiritually.
It is never too late, or early, to work with a financial planner, whether your net worth is $5,000 or $500,000. If you are not sure what type of financial planner to use, consult a trusted friend or family member for their recommendations.
Once you have found the right person for the job and talked about what type of plan or strategy might work best for you and your family, it's time to get started on developing a financial plan.
Give us a call if you would like to talk with a Christian financial planner about how you can develop a financial plan with God at the center. We'd love learn more and see if we can help.