Saving
Let’s look at the ant. Such a tiny insect teaches us a great deal about good management.
“Four things on earth are small, yet they are extremely wise: ants are creatures of little strength, yet they store up their food in the summer.”
Ants work together and help each other, and show us the value of planning for the future. They save during the summer when there is plenty and then use the store during the winter when resources are minimal.
Saving is sensible and the Bible recommends it.
“The wise man saves for the future, but the foolish man spends whatever he gets.”
The wise person spends less than they earn and over a long period the money builds up to form a reserve. Aim to save enough to cover three months of your personal expenses.
I first went through this study with a small group in our Church. At the time I was unsure of my future and found it difficult make decisions about my finances or plan for the future. I was on a low income and didn’t have much spare money. However during the study I felt encouraged to start saving and decided to save a very small amount each month as I knew that as I practised this habit it would help me. All I could afford was £10 a month at the time.
Even £10 a month over a year becomes £120, which when you are on a tight budget is a significant amount of money. As time went by I started to overpay my mortgage as well, just by a small amount each month. As my circumstances improved I continued to overpay until one day the mortgage was completely paid! That was a day of celebration.
However there is a big difference between saving and hoarding. When it is done because of fear it is unhelpful, it is helpful when we can fully trust God with our present and future and can also be generous givers, investing in God’s Kingdom, knowing that it all belongs to Him.
“In the house of the wise there are stores of choice food and oil but a foolish man devours all he has.”
Planning
Planning for the future is healthy and the Bible recommends it. We are now starting to look at longer term planning, rather than a monthly budget.
Start by analysing your current situation and having a clear picture of where you are financially now and where you would like to be. Next write down your financial goals according to what you want to achieve and what your dreams are.
“The purposes of a person’s heart are deep waters, but one who has insight draws them out.”
Once you have clear goals it is important to set your priorities – what should you aim for first?
What should you do long term? What needs to be put temporarily on hold?
Then, as with any good financial management it is vital to manage cash flow, control spending, and minimise impulse expenditure.
Investing
When and how you invest money will depend on your goals as well as your attitude to investment risk.
Wisdom and advice is important as well as is praying about your options. An investment that is suitable for a 15 year goal is not appropriate for money you will need in two years. If you need to buy a home in two years you will invest differently as opposed to planning for your retirement in 15 years.
Have a long term perspective.
Grow slow and avoid get rich quick schemes
Beware of anxiety about money
Limit your total investment
Diversify your portfolio
Share, discuss and agree your plans with your spouse if you are married
Get advice from wise people whose opinions you value
As assets grow over time you can aim to become financially independent. Being free from the burden of debt gives you greater opportunity and freedom to sow into God’s Kingdom as well as having more money to bless your family and being generous beyond your family too.
Could you consider starting to save some money regularly each month?
Have you written down your financial goals and thought about longer term planning?
This week ask the Lord what He wants to say to you about this area.