managinf finances

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1999 United Church of God, an International A ssocia t ionAll Rights Reserve d. Printed in U. S.A. Scri ptures in this booklet are quoted from the

New King James Ve rsion ( 1988 Thomas Nelson, I nc., publishers) unless otherwise noted.

MANAG INGYOURFINAN CES


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I nt ro d uct ion

This booklet rev iews many timeless economic principles from abiblical pers pective. It shows us how to manage our nancial affa irsf rom a go dly point of view. Tu rn the page to begin an import antBible-based study. You have nothing to lose and mu ch to ga in!

3 Managing Your Finances

Introduction

M oney makes the wo rld go ro und, or so it seems. Vast sumschange hands eve ry day in a global economy that affects virt uallyevery man, woman and child on the planet.

Paradoxically, in this time of wealth and opport unity, millions of

people stru ggle to surv ive economically. With consumer credit re ach-ing gi gantic pro portions, many nd themselves mired in debt. A nxietyabout money mat ters takes an enormous toll on mental and phy sicalhealth and ge neral we ll-being.

What can you do about money pro blems? Wh ere can you turn fo rsimple, practical guidelines to help manage your personal n ances?Libraries and bookstores provide re aders with va rious principles andtheories about money management. Books and videotapes assurereaders they can be n ancially successful; others tell us we canbecome millionaires pra ctically ove rnight.

But do you re alize that sound principles are to be found in abook you pro bably alre ady own? The Holy Bible offe rs prove nnancial advice and economic guidelines. The book of Prove rbsalone reveals mu ch about how to manage your personal n ances.When we ap ply the principles we can nd in Prove rbs, they usuallyadd up to economic success, nancial stability and peace of mind.

Jesus Christ talked about freedom from economic wa nt: I amcome that they may have life, and that they may have it more abu n-dantly (John 10:10). A bundant life includes nancial peace of mind.Throughout the Bible we can nd specic nancial principles andadvice. When we pro perly ap ply them, t hey wo rk for our benet .

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What Is Money?

childrens ch ildren, but the wealth of the sinner is stored up for therighteous (Proverbs 13:22).

Spiritual traps to avoidThese positive ex amples, howeve r, do not give the whole picture.

The fo llower of God who wants to make money but continue tofollow God must avoid certain spiritual traps. It becomes easy, asa person accumu lates wo rldly go ods, to view money rather thanGodas a source of protection and stability (Proverbs 18:11).

The apostle Paul talked about money and temptat ion: . . . Th osewho desire to be ri ch fall into temptation and a snare, and into manyfoolish and harmful lusts wh ich drown men in destruction and perd i-tion. For the love of money is a root of all kinds of ev il, for wh ichsome have strayed from the faith in their gre ediness, and pierc edthemselves through with many sorrow s (1 Ti mothy 6:9-10).

It is from these wo rds that some people get the idea that the Bibl e

teaches that mone y is the root of all evil. Howeve r, Paul wrote some-thing considerably diffe rent: that the love of money is a root of allkinds of ev il. M oney itself is not an ev il, but elevating money andmaterial wealth to a gre ater pri ority than it is pro perly due is a gre atspiritual trap .

In this passage Paul elab orates on the pers pective towa rd we alththat Jesus Christ had given many ye ars earl ier. In speaking of aChristians proper pri orities (Mat thew 6:24-33), Jesus said, Youcannot serve God and mammon ( verse 24). The English mammonis tra nslated here from a similar A ramaic wo rd that means ri ches,especially ri ches that turn ones attention away from God.

While re cognizing that people have physical needs, C hrist empha-sized that our pri ority must always be God. Jesus taught that we mu stseek rst the kingdom of God and His ri ghteousness, and all thesethings shall be added . . . ( verse 33).

Pauls comments to Ti mothy teach us not to make money a god orto allow it to come between us and God. Money is simply a tool thatcan be used for either good or bad. The key lies in our at titude. Pa uladds this advice to the we althy: Command those who are ri ch in thispresent age not to be haughty, nor to trust in uncertain riches but inthe living God, who gives us ri chly all things to enjoy. Let them do


What Is Money?

People hold widely dive rgent views about money. Some view it asthe root of all evil and believe that pove rty brings one closer to God.Others accept the health-and-wealth go spel: that Christians are almostautomatically destined to become n ancially successful if not fabu-lously we althy. Those who hold either of these contra dictory ideasthink it comes dire ctly from the Bibl e.

Is money good or evil? To lay a fo undation for managing onesnances, we must begin by considering wh at money is and whetherit is proper for Christians to accumu late we alth.

Wealth and the BibleThe rst time the Bible mentions someone with a lot of money, i t

speaks of a righteous man, A braham, who was ve ry ri ch in live stock ,in silve r, and in go ld (Genesis 13:2). Later we nd God pro misingthat through this mans descendants all nations of the earth would be

blessed (Genesis 18:18; 22:18; 26:4). A braham was we althy,but hewas also the father of all those who believe (Romans 4:11).

God is not opposed to ri ches. In fa ct, He is the ori ginator of n an-cial blessings (1 Samuel 2:7; Proverbs 10:22) and reminids us thatpersonal diligence can also lead to wealth (Proverbs 10:4).

When we have more money than we need for normal ex penses, weare wise to save some for later use. The Bible speaks well of the save r,noting that the ant wisely stores up food for the winter (Proverbs 6:6-11). It speaks favo rably of someone who would provide for his ch il-dren and gra ndchildren: A good man leaves an inheritance to his

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What Is Money?

God has revealed in His Wo rd, the Bibl e, all essential know ledgethat humans need to come into harm ony with His ways in bothspiritual and physical mat ters. God has given His people specicinstructions for supporting the poor (Deutero nomy 14:28-29; 15:1-2; 26:12-14). His Wo rd even gives instructions for how His people

should provide n ancially for annual re ligious observa nces(Deuteronomy12:17-18; 14:22-27).Jesus took the lesson of spiritual and nancial pri orities a step

f urther. Then Peter began to say to Him, See, we have left all andfollowed Yo u.So Jesus answe red and said, A ssuredly, I say to yo u,there is no one who has left house or bro thers or sisters or father ormother or wife or ch ildren or lands, for My sake and the go spels,who shall not re ceive a hundre dfold now in this timehouses andbrothers and sisters and mothers and ch ildren and lands, with pers e-cutionsand in the age to come, e ternal life ( verses 28-30). Here,Jesus promises physical and spiritual rewa rds for putting Him rst.


good, that they be rich in good works, ready to give, willing to share,storing up for themselves a good fo undation for the time to come, t hatthey may lay hold on eternal life (1 Ti mothy 6:17-19, e mphasisadded thro ughout).Can we seek wealth and eternal life?

On another occasion, a young man asked Jesus Christ wh at onemust do to inherit eternal life. After Jesus told him he must ke epGods commandments, the man responded that he had kept themf rom his youth (Mark 10:17-20). Then Je sus, looking at him, l ovedhim, and said to him, One thing you lack : Go your way, sell wh at-ever you have and give to the poor, and you will have tre asure inheaven; and come, t ake up the cro ss, and fo llow Me.But he was sadat this wo rd, and went away sorrow f ul, for he had gre at possessions.

Then Jesus looked around and said to His disciples, How hard itis for those who have ri ches to enter the kingdom of God!And thedisciples we re astonished at His wo rds. But Jesus answe red again andsaid to them, Children, how hard it is for those who t rust in riches toenter the kingdom of God! It is easier for a camel to go through theeye of a needle than for a ri ch man to enter the kingdom of God(verses 21-25). (See also The Eye of a Needle, p age 7.)

Notice the disciplesreaction when they heard Je sus commentsabout how difficult it was for a ri ch man to enter the kingdom:. . . Th ey we re gre atly astonished, s aying among themselve s, Wh othen can be save d? But Jesus looked at them and said, With men itis impossibl e, but not with God; for with God all things are possibl e(verses 26-27). Eternal life is a gift given to those who humbly seek

God (John 3:16; Romans 6:23; Ephesians 2:8-10). Eve ryone, whetherrich or poor, must re ly on Gods mercy for eternal life.A lesson in priorities

Jesus explained that eternal life is a spiritual issue of paramountimportance. The wealth of the man was not intrinsically wrong.But his misplaced prioritieshis improper attachment to materialwealthwas. Christ perceived that the man was more interestedin his money than God. Indeed, the young man was despondentover Christs words and went away sorrowful, for he had g reatpossessions (Mark 10:22).

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What did Jesus Christ mean whenHe said, It is easier for a camel togo through the eye of a needle thanfor a rich man to enter the kingdomof God ? (Mark 10:25). Althoughthe scriptural context is clearJesuswas warning His followers not to puttheir trust in richesthe question is

puzzling. What exactly was Jesus say-ing? Some have believed that thephrase eye of the needle refers tothe name of a small gate into a citythrough which camels had to kneelto enter. A number of Bible re sourcesshow that this interpretation is incor-rect. Here is what one re presentativeresource says:

Jesus words [in Matthew 19:24,Mark 10:25 and Luke 18:25] that it is

easier for a rich man to enter heaventhan for a camel to go through theeye of a needle, re ect an idea foundin early rabbinic writing. There is noarchaeological or historical support forthe common idea that the needleseye was a small pedestrian gatethrough the city wall. The statement

simply means that humanly speaking,this is an impossible thing. Only adivine miracle can make it possible(Nelsons Illustrated Bible Dictionary,1986, Tools of the Bible ).

It appears that Christs words mustbe taken literally. Just as it is impossiblefor a camel to go through the tiny eyeof a needle, it is equally impossible forthose who trust in riches, instead ofGod, to enter the Kingdom of God.

The Eye of a Needle


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The Right Use of Money

The Right Useof Money

S ince money is a tool that can be used for good or bad, it isimportant that we understand the Bibl es instruction on how we areto use it. The Bible gives directions and principles about the way weshould use our nancial re sources. But, b efore considering thespecics, we need to understand Gods pers pective and wh at Hedoes for each one of us.

God reveals He is the Cre ator of heaven and earth. As such , eve ry-thing belongs to Him. . . . All the earth is Mine, He decl ares (Exodus19:5). This includes all precious metals (Haggai 2:8), animals (Psalm50:11) and people (Ezekiel 18:4).

When God made man in His image (Genesis 1:26-27), He put himin the ga rden of Eden to tend and ke ep it (Genesis 2:15). A dams job

was to care for the ga rden.After Adam sinned by eating of the fo rbidden fru it, God told

him: Cursed is the ground for your sake; in toil you shall eat of itall the days of your life. Both thorns and thistles it shall bring fo rthfor yo u, and you shall eat the herb of the e ld. In the swe at of yo urface you shall eat bread till you re turn to the gro und, for out of ityou we re taken; for dust you are, and to dust you shall re turn(Genesis 3:17-19).

Like Adam, we must wo rk to sustain our lives. Human beings,howeve r, a re not self-sufficient. God continues to help us, p roviding


So He cl early is not against pro sperityprovided we dont make itthe gre atest pri ority in our live s.

Keeping pri orities straight can be quite a ch allenge for peoplewho have been blessed with mat erial goods. The ri ch must notglory in thei r ri ches (Je remiah 9:23). We must remember Chri sts

instruction rega rding our pri orities: . . . Lay up for yo urselves tre a-sures in heave n, where neither moth nor rust destroys and wh erethieves do not break in and steal. For wh ere your tre asure is, t hereyour heart will be also ( Matthew 6:20-21).

People are pre judicedPeople can be prejudiced about money. Sometimes the we althy

despise the poor, and sometimes the poor despise the ri ch. Jesus didnot hold such biases. He ate with tax collectors and sinners , wascalled their friend (Mat thew 9:10; 11:19) and ministered to the poor(Matthew 11:5).

Yet He showed no partiality and could also be found with the ri ch(Matthew 27:57; Luke 19:1-10). A we althy man so admired Je susthat he bu ried Him in his unused fa mily tomb (Mat thew 27:57-60).Jesus Christ died for all of humanity, rega rdless of anyo nes socialor nancial standing.

The Scri ptures we have just rev iewed show that money is neutra lneither good nor bad. Our attitude toward it, h oweve r, is impor-tant. Money tests our allegiance; it makes ap parent whether we arecommitted to God or to our possessions. At best, m oney is a tool weuse for important purposes. In the next ch apter we will see thatChrist taught that a Christian has nancial obl igationsto God and

his fe llowman.

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prophets and priests. Now, in this age, He uses His Church , Hiscalled-out fo llowers. Jesus Christ commissioned His fo llowers toproclaim the gospel of the kingdom of God to all nations (Mark 1:14-15; Mat thew 24:14; 28:19-20). Chri sts message thegospelis far more ex tensive than many unders tand. (To discove r

the biblical truth about the message Jesus Christ brought and taught,


for us in ways we cannot. He causes the grass to grow for the cat tle,and vege tation for the service of man, t hat he may bring fo rth fo odf rom the eart h, He tells us (Psalm 104:14).

When we enjoy the fruit of our lab ors, we should remember thateve rything we have is ultimat ely a gift from God, the Maker of eve ry-

thing. As for eve ry man to whom God has given ri ches and we alth,and given him power to eat of it, to re ceive his heri tage and rejoicein his laborthis is the gift of God ( Ecclesiastes 5:19). With a fewexceptions (see The Bible and Wo rk , page 11), wo rking hard anden joying the resulting fruits of ones labor are go dly principles mostpeople understand and accept as a fundamental part of life.The work of God

Yet humans are not the only ones who wo rk. Jesus Christ said Godthe Father wo rks (John 5:17). As a spirit being (John 4:24), God doesnot need fo od, shelter and clothing to surv ive. His wo rk is spiri tualand humanitarian. John 3:16 summari zes Gods motivation for eve ry-thing He does towa rd mankind: For God so loved the wo rld that Hegave His only begotten Son, t hat wh oever believes in Him should notperish but have eve rlasting life. This wo rk of God, wh ich He bega nbefore the fo undation of the wo rld (Mat thew 25:34; Reve lation 13:8;1 Timothy 1:9), c ontinues.

Similarly, God expects spiritual and humanitarian wo rk of us.Just as we wo rk to sustain ours elves phy sically, we must wo rk fora gre ater spiritual purp ose. The apostle Paul tells us, For we areHis wo rk manship, created in Christ Jesus fo r good works, whichGod prep ared befo rehand that we should walk in them ( Ephesians

2:10). We cannot earn salvation by human effo rt s , but God makes itclear that we we re also cre ated to do good wo rk s that have a vitalspiritual dimension.

The money we earn from our physical and mental effo rts can beprotably used to support important spiritual concepts and endeavo rs.Lets examine and understand an important biblical principle the earlyChurch pra cticed.Our nancial priority

Throughout the ages God has seen to it that a true message of hope has been pre served and spre ad. He rst used His pat riarchs,

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Some in the church at Thessalonicawho were able to work apparently chosenot to do so. Instead, they expected othersto provide for their physical needs.

In addressing this issue, the apostlePaul wrote to the church in that city, Nowwe exhort you, bre thren, warn those who

are unruly . . . (1 Thessalonians 5:14). TheGreek word for unruly is ataktos. Thisword was especially a military term ,denoting not keeping rank, insubord i-nate; it is used in 1 Thes. 5:14, describingcertain church members who manifestedan insubordinate spirit, whether byexcitability or officiousness or idleness(Vines Complete Expository Dictionary ofOld and New Testament Wo rds, 1985,Disorderly).

Being idle or lazy is not in step withGods expectations of our behavior.

In Pauls second lett er to this same con-gregation, he again addressed this situa-tion: But we command you, bre thren, inthe name of our Lord Jesus Christ, that youwithdraw from every brother who walksdisorderly [ataktos] and not according tothe tradition which he received from us.For you yourselves know how you oughtto follow us, for we were not disord erly[atakteo] among you; nor did we eat any-ones bread free of charge, but worked

with labor and toil night and day, that wemight not be a burden to any of you, notbecause we do not have authority, but tomake ourselves an example of how youshould follow us (2 Thessalonians 3:6-9).

Paul, to show that his motives werepure and to avoid being accused of taking

advantage of the members of Thessa-lonica, cited his own example of havingworked to support himself when he was inthe area earlier. Although he had the rightto be supported by them in exchange forhis ministering to them (1 Corinthians 9:1-18), he chose not to.

Paul continued: For even when wewere with you, we commanded you this:If anyone will not work, neither shall heeat. For we hear that there are some whowalk among you in a disorderly manner,not working at all, but are busybodies.

Now those who are such we commandand exhort through our Lord Jesus Christthat they work in quietness and eat theirown bread (verses 10-12).

Since other biblical instruction calls forhelping the needy (Matthew 19:21; Gala-tians 2:10), Paul is obviously corre ctingthose who were able to work but chose notto do so. If we are able, God expects us towork so we can provide for our own needsand not unnecessarily burden others.

The Bible and Wo rk


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Examples of right eousnessThe rst mention of tithing in the Bible is in Genesis 14. Here,

Abram (later renamed A braham; Genesis 17:5), the same personlater extolled as a model of behavior for Christians (Galatians 3:29;Romans 4:11), e ngaged in a rescue mission to free his nep hew, L ot,

who had been taken cap tive (Genesis 14:1-14).After successfully rescuing Lot and re covering va rious go ods,

Abram met with Melch izedek , the priest of God, and gave him atithe of all ( verses 16-20). Note that A braham tithed on everyt hingnot just agri cultural produce as some have concl uded.

Later we read of A brahams grandson Jacob making this pro miseto God: . . . Of all that You give me I will sure ly give a tenth toYou (Genesis 28:22). The practice of tithing, we see, p redated theancient nation of Israel and the national covenant God made withthe Isra elites.

As time passed, the descendants of A braham, Isaac and Jacob grewinto the nation of Israel. After rescuing them from slave ry in Egy pt,God instructed the Israelites on how to be a holy nation (Exodus19:6). Pa rt of their obedience that would make them a specialtreasure to Me ab ove all people ( verse 5) entailed tithing on theincrease God gave them year by year (Deutero nomy 14:22).

This basic biblical principle applies in our wo rld. A fa rmer has cer-tain expenses like seed, fe rtilizer, f uel, cost of equipment and perhap srent for the land he fa rms befo re a crop is sown. The amount of increase is determined by subtracting the costs of doing business fro mthe payment he re ceives for his harvest. Similar calculations wo uldapply in most endeavo rs, whether we are self-employed or wo rk fo rsomeone else.Change in the laws applicat ion

After determining the tithe, or tenth, of ones incre ase, G odinstructed that this increase was to be given to the Lev ites, who we reresponsible for taking care of the tab ernacle (Numbers 1:50-53). A f terreceiving the tithes, t hey, t oo, were expected to tithe on their incre ase(Numbers 18:26; Nehemiah 10:38).

Since Je s uscru c i xion and re surrection, He has become HighPriest fo rever according to the order of Melch izedek (Hebrews


be sure to request your free copy of the booklet The Gospel of theK ingd om.) Dedicating a portion of our incomes to this noble causecan make it possible for the good new s, this message of hope, to beproclaimed throughout the wo rld.

When Jesus sent out His disciples to spread the gospel of the

Kingdom (Mat thew 10:1), He said, Freely you have re ceived,f reely give (verse 8). The disciples did not have to ch arge others toprovide for their physical needs because those needs we re vo luntar-ily supplied by those who heard their message (Mat thew 10:11;Luke 9:3-4). As Paul later wro te, Even so the Lord has com-manded that those who pre ach the gospel should live from thegospel (1 Corinthians 9:14).

The question nat urally ari ses, how mu ch should we contri buteto further Chri sts commission to pro claim the gospel? People maydebate this answer endlessly, but God has alre ady given a specicanswer10 perc ent, also called a tithe (Leviticus 27:32). Ininstructing the ancient Israelites how to manage their n ancialaffairs, God said, all the tithe of the land, whether of the seed of the land or of the fruit of the tre e, is the L ORDS. It is holy to theLORD (Leviticus 27:30).

This passage shows us that this tithe belongs to God; it is His. It isnot ours to do with as we please. Because God owns eve rything, Hehas the right to retain wh atever He chooses. In re ality, He is re quest-ing only that we re turn to Him a portion of wh at He has alre adygiven to us.

God allows us to ke ep the gre atest portion of the physical bl ess-

ings He provides us. He asks only that we re turn a perc entage, atenth, to Him in ack nowledgment that He is the source of all go odthings. If we ignore this pri nciple, we will rob ours elves of Godsblessings (Malachi 3:8-9).

During His eart hly ministry, Jesus Christ upheld the practice of tithing (Mat thew 23:23) and encouraged His fo llowers to lay up fo ryourselves tre asures in heave n, where neither moth nor rust destroy sand wh ere thieves do not break in and steal ( Matthew 6:20).Because tithing is a fundamental biblical principle for a moreabundant life, l ets examine this scri ptural practice in more detail.

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due, when it is in the power of your hand to do so.When we give to people in need, we fo llow the example of our

Creator, whose nat ure is love towa rd others (John 3:16; 1 John 4:8).God wants us to develop the same lov ing, caring concern He has fo rall humankind. Describing this giving at titude, Paul wro te, Let him


6:20). Jesus serves in the same pri estly order as Melch izedek , towhom A braham paid tithes long ago. This ch ange from a Lev iticalpriesthood back to the Melch izedek order re quired other ch anges.

As Heb rews 7:12 say s, For the priesthood being ch anged, o f necessity there is also a ch ange of the law. The physical pri esthood

of the Levites was replaced by the spiritual priesthood of Je susChrist. The pri estly services at the temple, wh ich we re supportedby tithes, came to an end when the Romans cap tured Je rusalem anddestroyed the temple in 70 A .D. To day Jesus Christ is our spiri tualHigh Pri est, and His ministers have the responsibility of serv ingGods people. Gods tithes are now to be given to those who arefaithf ully continuing His wo rk .

Ack nowledging Gods blessings with His tithe and honoring Himwith offe rings is the rst step in setting up a nancial plan gro undedin biblical principles. As Proverbs 3:9 tells us: Honor the L ORDwith your possessions, and with the rs tf ruits of all your incre ase;

so your barns will be lled with plenty, and your vats will ove rowwith new wine.

Providing for t he needyEarly in the history of mankind, God intended for us to be our

brothers ke eper.Though Cain failed to understand this pri nciple(Genesis 4:9), God made it clear in His instructions to Isra el: For thepoor will never cease from the land; there fore I command yo u, say-ing, You shall open your hand wide to your bro ther, to your poor andyour needy, in your land ( Deuteronomy 15:11).

The principle of helping the needy goes back to Gods ori ginal

instruction for people to care for each other. Jesus Himself saidthat serving others (Mat thew 25:31-46) and having love for oneanother we re honorabl e, identifying ch aracteristics of His fo llowers(John 13:34-35).

As we are abl e, at times we need to provide additional help to theneedy. As the apostle John wro te: But wh oever has this wo rldsgoods, and sees his brother in need, and shuts up his heart from him,how does the love of God abide in him? My little ch ildren, let us notlove in wo rd or in tongue, but in deed and in tru th (1 John 3:17-18).Proverbs 3:27 add s, Do not withhold good from those to whom it is

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In a confrontation with the Phariseesand scribes over ritualistic hand-washing,Jesus condemned the spiritual blindnessthat led them to elevate their traditionsover the intent of Gods law: Well didIsaiah prophesy of you hypocrites, as it iswritt en: This people honors Me with theirlips, but their heart is far from Me. And in

vain they worship Me, teaching as doc-trines the commandments of men. Forlaying aside the commandment of God,you hold the tradition of menthe wash-ing of pitchers and cups, and many othersuch things you do.

And He said to them, All too wellyou reject the commandment of God,that you may keep your tradition. ForMoses said, Honor your father and yourmother ; and, He who curses father ormother, let him be put to death. But yousay, If a man says to his father or mother,

Whatever prot you might have receivedfrom me is Corban (that is, a gift toGod), then you no longer let him do any-thing for his father or his mother, makingthe word of God of no effect thro ughyour tradition which you have handeddown. And many such things you do(Mark 7:6-13).

What is the Corban mentioned inthis passage, and how does it tie in withChrists words? According to Nelsons Illus-

trated Bible Dictionary, Corban is a wordapplied to a gift or offering in the Te mplewhich declared that gift dedicated to Godin a special sense. Once a gift was off eredunder the special declaration of Corban, itcould not be withdrawn or taken back; itwas considered totally dedicated for theTemples special use. Jesus condemned the

Pharisees for encouraging the people tomake such gifts to the Temple whileneglecting their responsibility to care fortheir parents . . . (1986, Corban ).

The International Standard Bible Ency-clopaedia adds: Anything dedicated tothe temple by pronouncing the votiveword Corban forthwith belonged to thetemple, but only ideally; actually it mightremain in the possession of him whomade the vow. So a son might be justie din not supporting his old parents simplybecause he designated his pro perty or a

part of it as a gift to the temple, that is, asCorban. There was no necessity of full l-ing his vow, yet he was actually pro hibitedfrom ever using his pro perty for the sup-port of his parents (Electronic Database,1996, Biblesoft, Corban ).

Jesus taught that proclaiming some-thing as Corban as an excuse for re fusingto help ones needy parents was a violationof the Fifth Commandment, Honor yourfather and your mother (Exodus 20:12).

What Is Corban?


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Keys to Successful Money Management

Keys to SuccessfulMoney Management

When we decide to use our money according to ap plicable scri p-tural pri nciples, we soon see the need for planning and rev iew. Noticesome advice from the book of Prove rbs:

Be diligent to know the state of your ocks, and attend toyour herds; for riches are not forever, nor does a crown endure toall generations. When the hay is removed, and the tender grassshows itself, and the herbs of the mountains are gathered in, thelambs will provide your clothing, and the goats the price of a eld;you shall have enough goats milk for your food, for the food of your household, and the nourishment of your maidservants(Proverbs 27:23-27).

This passage shows why we need a nancial plana budget

for our household. Notice that several timeless principles springfrom this passage.

First, we need diligence to successfully implement any n ancialplan. In the example ab ove, we are advised to care f ully monitor thestate and condition of our animals. If an animal becomes ill, it needsspecial care. Insufficient food or water for live stock re quires immedi-ate attention. A fa rmer with herds must look after his animals if theyare to surv ive and the household is to pro sper.

How does this ap ply to those of us who are nt fa rmers or ra nchers?The fundamental lesson is that we cannot expect nancial success by


who stole steal no longe r, but rather let him lab or, working with hishands wh at is go od, that he may have something to give him who hasneed (Ephesians 4:28).

Charitable giving is another fundamental step in a go dly nancial plan.

Supporting your f amily

Lets turn our attention to the fa mily. Paul wrote about the need toprovide for your nearest of kin: . . . If anyone does not provide fo rhis ow n, and especially for those of his household, he has denied thefaith and is wo rse than an unbelieve r (1 Ti mothy 5:8). God ex pectsfamilies and re latives to take care of each other if they are abl e,before asking others for help. Refusing or neglecting to obey thisprinciple is an aff ront to God and His instru ction.

Jesus Christ ro undly condemned any who would neglect Godsinstruction to care for their families (Mark 7:8-23; also see What IsCorban?, page 15). Regre ttably, some fail to support their fa milies.Fathers and mothers who refuse to provide for their ch ildren violat eGods most basic nancial responsibilities and principles and bri nguntold hardships on their off spring. The same is true for ch ildren wh orefuse to help their aged parents when they are in need.

Jesus used the principle of providing for fa mily members to illus-trate Gods love for us as His ch ildren: If you then, being ev il, k nowhow to give good gifts to your ch ildren, how mu ch more will yo urFather who is in heaven give good things to those who ask Him!(Matthew 7:11).

Now that we have an idea of how God expects us to use our n an-cial re sources, lets look at specics on how to establish and maintain

a wo rk able nancial plan.

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you have a positive net wo rth. If it is a negat ive nu mber, you are indebt. If you have a signicant amount of deb t, rega rdless of your networth, you need to prep are and fo llow a bu dget that will help yo uimprove your nancial picture.

Analyze your monthly cash ow

After determining your ove rall nancial condition, the next step isto analy ze your monthly cash ow. This will show you wh ich dire c-tion you are headedwhether you are accumu lating money, h oldingsteady or going further in debt. You can do this by examining yo ur


simply devising a plan and then bl issf ully ignoring the fa ctors thataffect it. Instead, we must know wh ere, h ow and why we spend ourmoney. If we ignore this pri nciple, we will nd ours elves makingpoor decisions and spending money we dont have.

This passage also outlines the needs of a household and how theymust be met throughout the ye ar: hay and herbs harvested at theproper time, p roperty purchases wh ere and when ap propriate, and theneed for household necessities such as clothing and a steady supplyof fo od.

Planning is another key to successful money management. Fro mthe book of Proverbs we glean the need for fo resight. A prudentman fo resees evil and hides himself, but the simple pass on and arepunished (Proverbs 22:3).

These principles demonstrate the value of making and fo llowinga budget. Budgeting allows us to systemat ically allocate re sources tomeet our current and future needs.

When we accept Gods instruction to tithe, we automat ically begi nthe process of bu dgeting. We calculate wh at comes to us as anincrease and set aside perc entages of that increase for Gods wo rk ,suitable offe rings, helping the needy and caring for our fa milies.

Now lets tighten our focus and ap ply these bu dgeting principlesto our households.

Figuring your net w orthWhere and how do we begin to fo rmulate a wo rk able nancial strat-

egy for our families? Fo llowing are some practical steps to consider.The rst step in designing a personal spending plana bu dget

is to determine your net wo rth. In other wo rds, nd out your ove rallnancial condition. Begin with a list of your assets: possessions (andtheir fair market value) that you own and could sell. (See the wo rk-sheet on page 19.)

Then make a list of your deb ts: the amounts you owe to cre ditors(bank s, mortgage companies, s tores, credit cards and the like ).

Subtract your total indebtedness (the total of your debt list) fro myour assets (the total monetary value of your asset list) and you haveyour net wo rth: a summary of your nancial condition.

If the combination of your assets and debts is a positive nu mber,

18

Dete rmining Your Net Wo rthAsse ts

Tot al in all checking and savings account s $ _ _ _ _ _ _ _ _

Total in all money-market accounts $ _ _ _ _ _ _ _ _ Current value of al l securi t ies and investments $ _ _ _ _ _ _ _ _

(Include stocks, bonds, annuities, IRAs, etc.)Current value of lif e insurance (cash value) $ _ _ _ _ _ _ _ _ Current value of home $ _ _ _ _ _ _ _ _ Current value of any personal pro pert y $ _ _ _ _ _ _ _ _

(Include autos, rental pro pert y, collectibles, etc.)

Line ATotal Assets (add all the lines above) $ _ _ _ _ _ _ _ _

Liab ilit ie s

Home mortgage (balance due) $ _ _ _ _ _ _ _ _ Total balance due on credit card s $ _ _ _ _ _ _ _ _ Total due on other loans $ _ _ _ _ _ _ _ _

Line BTot al Liabilit ies (add the three lines above) $ _ _ _ _ _ _ _ _

Net Wo rt h (subt ract Line B f rom Line A) $ _ _ _ _ _ _ _ _


11/25


than double the purchase price of the house, with the add itionalmoney going to pay the interest on the loan. Sky rocketing costs of new cars and mu ltiyear loans cre ate a similar pro blem with automo-bile loans. The more we can avoid borrowing money, the better off well be in the long ru n.

On the other hand, sometimes it may be necessary to borrowmoney. You may need it for business purp oses, buying a house orpurchasing a car. Even when you borrow money for these re asons,it is good to be sure you have sufficient ex tra funds for emerge ncieswithin your bu dget befo re pro ceeding. Emergencies and unex pectedexpenses always ari se.

Be cautious befo re committing yo urself to any debt. Debts we cannotimmediately rep ay have a way of compounding our nancial pro blems.

Buying a house

In addition to costs associated with buying a house, s uch as a

down payment (often 10 or 20 percent of the purchase price) andmortgage fe es, you should also consider maintenance costs and taxe s.If you choose to sell your house, you often have to pay fees to

a selling agent that can ra nge up to 7 percent of the selling pri ce.Because of these costs, buying a house and living in it for a shorttime befo re selling it again may be a ch ancy nancial decision.

Other fa ctors you should consider when purchasing a house arethe local market (whether houses in your area are gaining or losingvalue), the location (those in desirable areas usually resell better) andwhether the house will serve your needs as well as the needs of a future bu yer.

Transportation

Owning an automobile is a wonderful conve nience, but it can con-sume a large portion of any household or personal bu dget. Consider-ing the costs of fuel, i nsurance, rep airs and car pay ments, if yo ucannot purchase a ve hicle outright automobile expenses can quick lyadd up to a signicant amount. Because of these costs, using publ ictransportation (bu ses, trains, etc.) may be a better ch oice. Althoughnot as conve nient, this option is ge nerally less ex pensive.

If we need a car because public tra nsportation is not ava ilable or


monthly income and expenses. (A wo rksheet for determining yo urmonthly income and expenses is on pages 24-25.)

If you have money left over at the end of the month after pay ingall your expenses (including housing, fo od, clothing, utilities, trans-portation, insurance, taxes and re creation), your net wo rth is incre as-ing, and you should have money to save or invest. If you are notmeeting your ex penses, you need to make adjustments so you canpay your bills. If you are in dire need of major adjustments, c aref ullyread the rest of this ch apter and Financial Black Holes ( beginningon page 36) for ways to cut ex penses.

No matter your nancial dire ction, diligent, periodic ex aminationof your expenses is important to successfully managing your money.Here are a few things to consider about some typical ex penses.Education

One of the rst issues to consider in a nancial plan is educat ion.Although obtaining a college degree or cert ication in a part iculartrade costs money, this expense is almost always one of the bestinvestments we can make. On ave rage, people with higher educat ionand marke table job skills consistently earn more money.

Proverbs 4:5-7 tells us: Get wisdom! Get understanding! Do notforget, nor turn away from the wo rds of my mouth. Do not fo rsakeher, and she will pre serve you; love her, and she will ke ep yo u.Wisdom is the principal thing; there fore get wisdom. And in all yo urgetting, get unders tanding. Gaining additional education is one of thebest nancial investments we can take.

Proverbs 24:27 similarly adv ises: Prepare your outside wo rk , makeit t for yo urself in the eld; and afterwa rd build your house. In otherwords, prepare yo urself with the re sources to make a liv ingthrougheducation and job tra iningbefore settling in and making yo urself comfortable with mat erial possessions.Managing debt

Going into debt is ge nerally not a good idea. The borrower is ser-vant to the lender ( Proverbs 22:7). The difficulty with debt is that , inaddition to paying back the principal (the amount borrowe d), we alsohave to pay interest on the outstanding balance. Over the course of atypical 30-year loan for a house, for ex ample, the borrower pays more

20


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vandalism and the like, home insurance is especially importantif we do not have funds to repair or replace damage. If we have aproperty mort gage, l enders ge nerally re quire insurance to safeg uardtheir inve stment.

In this day of mounting costs for medical serv ices, health insur-

ance is also vital. Although premiums can be ex pensive, t rying to payastronomical bills that can arise from a single accident or illness canbe deva stating if we do not have insura nce.

Since a wide va riety of insurance is ava ilable, we have to considerour individual circumstances in making decisions about the kinds andlevels of insurance we need.

SavingsLast but not least, lets consider savings. Although savings are

often considered a luxury or afterthought, they should be includedin every household budget. The reason is simple: Emergencies and

unexpected expenses will always arise. When we have savings tocushion the blow, the effects of these surprises are not as devastat-ing. From this perspective, saving is simply delayed spending.

In addition to having a cushion set aside for emerge ncies, there aremany other reasons for saving money : homes, cars, personal items,education and leaving an inheri tance. All of these, of cours e, requiresetting money aside on a regular basis. Self-discipline is one of themost important ch aracteristics necessary for accumu lating we alth.

Be awa re that marketing techniques try to focus your mind on theopposite. Th ey encourage you to buy now and pay later and conveya you deserve it today mentality and ap proach to life. Having the

self-discipline to save, and then to know when it is ap propriate tobuy, is one of the most important principles for successfully bu ildingup nancial re serves.

In the next ch apter, we consider how husbands and wives canwork together in ap plying some of these basic concep ts.


for other valid re asons, we should be sure we are able to pay for allthe costs invo lved with owning a ve hicle, including insura nce.

Many countries require drivers to carry some form of auto-mobile insurance. God expects His followers to obey the lawsof the land (Romans 13:1-7) and to love their fellowman bycovering the cost of accidents or injuries they may cause (Matthew22:37-39; Exodus 21:18-19). Lack of insurance may leave youvulnerable to a huge nancial liability should you be involvedin an accident.

FoodThe cost of food is a signicant portion of a household bu dget. In

general, purchasing basic commodities in bulk and prep aring mealsat home is ch eaper than buying highly processed items and eating outat re staurants. Some families nd that having a ga rden and purch asingf ruits and vege tables in bulk when they are in season are also helpfulin stre tching their food bu dget.

ClothingEveryone must have cl othes, yet this area also provides opport uni-

ties for economy. A planned wa rdrobe vs. impulsive buying is mu cheasier on clothing bu dgets. Purchasing go od-quality, but tra ditionallystyled, clothing will often be the most economical ap proach in thelong ru n.

Because such clothing will last and remain in style for a longtime, it is less ex pensive over time than clothing of poorer qualityor fashions that mat ch the latest fad but quick ly go out of style.

InsuranceMany types of insurance are ava ilable today life, h ome, automo-

bile and health. As the Bible tells us: A prudent man fo resees ev iland hides himself, but the simple pass on and are punished ( Prove rbs22:3). Because of the potential for tremendous expense in these are as,each of us has to make important decisions rega rding insura nce.

Concerning life insura nce, the time of gre atest need for this insura nceis when a fa mily has small ch ildren. As ch ildren leave the home and areable to provide for themselve s, the need for life insurance lessens.

With the potential for pro perty destruction from storm s, re,

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14/25

Money in Marr iage

to cover their nancial and moral irresponsibility.Of cours e, sexual responsibility is not just for teenage rs. Grow n

men and women must also consider the results of their actions. If theyhave ch ildren outside of marri age, h ow will they provide for a ch ildsnancial needs and for the hap py, s table, fat her-mother env ironmentevery child needs?

Gods direction is that sexual re lations are proper only withinmarriage (1 Corinthians 6:18; 7:2; 1 Thessalonians 4:3; Heb rews13:4). When we fo llow Gods command, no babies are born out of wedlock. Thus the nancial difficulties that almost always accom-pany such mistakes are eliminat ed. (To understand more about theSeventh Commandment, please request your free copy of the bookletThe Ten Commandments. )

Finally, even marri ed, mature adults who have completed theireducation are wise to plan when to have ch ildren. Some pru dentyoung couples wo rk and accumu late nancial re serves befo re start ing

their families. Such an ap proach re ects personal discipline, fo resightand a well-designed nancial plan.

Caring for childrenA common complaint in two-income households is the diffi culty

of nding someone to care for the ch ildren while both parents are atwork. Many couples, instead of giving their ch ildren to stra ngers, aredeciding to care for their own. One parent stays home with the ch il-dren until they are old enough to be in school befo re re turning to theregular wo rk place.

When the ex tra expenses of child care, t ransportation, additional

clothing, etc., are taken into considerat ion, some families nd there islittle diffe rence in their household incomes when one of them re mainsat home to care for their ch ildren.

Though some may view this as old-fa shioned, it is pre cisely theapproach assumed in the Bibl e. The book of Prove rbs, for ex ample,speaks of a father and mother teaching a child important va lues(Proverbs 1:8; 23:22). One of the simplest and best solutions for ch il-dren is for their own parents to care for them and teach them. Ye t,with so many single pare nts, we understand the practical pro blemssome will fa ce.


Money in Marri age

M oney is one of the most fre quently cited reasons for coni ctwithin marri age. It is not uncommon for both husbands and wive sto have jobs outside the homea major ch ange from the norm justa few decades ago when husbands we re expected to be the majornancial prov iders.

With the addition of women in the wo rk place, householdincomes have increased dra matically. Howeve r, this new windfallof money has not soothed all nancial tension. Ta xes and otherexpenses, as well as stress leve ls, have also soared upwa rd. Fa miliesstill face nancial hardship; arguments over money still plague mar-riages. In this ch apter we will consider some of the typical n ancialissues couples face and some practical guidelines for re lieving stre ssover nancial mat ters.

Planning children

Estimates for the cost of hav ing, raising and educating a child ru ninto daunting g ures. Because God instructs families to provide fo rtheir own (1 Ti mothy 5:8), couples must re alize they take on impor-tant nancial responsibilities when they have ch ildren.

Preparation for children is crucial. When children are born outof wedlock, unexpected questions and problems arise. If the par-ents are teenagers, can they complete their education? How willthey provide for themselves and the child? If they do not have thenancial resources required, other family members (often parentsand grandparents) or the government will probably be expected

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Money in Marr iage

It is most important for us to be rich towa rd God. We mu stmake Gods instruction our highest pri ority. Couples who ke epthese biblical principles in mind may nd it easier to share theirphysical re sources.

Working together in marriage

Societal customs gove rning wh ich mate should handle the fa milynances are in a state of ch ange. In ye ars gone by some culture splaced this responsibility upon the husbanda value unders cored bybasic biblical teaching (Ephesians 5:23). But, although the husbanddoes have leadership responsibility within marri age, the Bible alsomakes it clear that wives can contri bute gre at nancial wisdom andskills to the fa mily economy (Proverbs 31).

Sometimes the wife has gre ater nancial and bu dgetary skills,and a wise husband should take note. A wife may be better at main-taining the ch ecking accounts, balancing the ch eckbook and pay ingthe bills, and in such cases the fa mily may be better off having herhandle these responsibilities. In a loving and respectful marri ageboth part ners should discuss major nancial decisions and pri orities,


Sharing resourcesFor husband and wife to wo rk together n ancially, both must be

willing to share. From the begi nning, Gods instructions have beenthat a man shall leave his father and mother and be joined to hiswife, and they shall become one e sh (Genesis 2:24). Later we re ad

that husbands should love their wives and wives should submit totheir husbands (Ephesians 5:22, 25).

There is no room for selshness in the loving marri age re lation-ship God desires for eve ry couple. Too often, c onicts over moneyarise within marri ages when one mate seeks to gratify his or herpersonal interests befo re meeting the needs of the fa mily. Even if basic needs are met, a rguments can arise over how add itionalmoney should be spent. When considering how many people inthe wo rld are bare ly able to surv ive, c onict over disposable fundsseems ludicro us.

During His eart hly ministry, Jesus Christ was ap proached by aperson invo lved in a monetary dispute. Then one from the crow dsaid to Him, Te acher, tell my brother to divide the inheritance withme.But He said to him, Man, who made Me a judge or an arbitra-tor over yo u? And He said to them, Take heed and bewa re of cov-etousness, for ones life does not consist in the abundance of thethings he possesses ( Luke 12:13-15). (See The Gre atestInheritance,p age 29.)

It is easy for us to give more attention to our personal desires inthis life than to think about the spiritual values we should be learn-ing. Jesus illustrated this concept with a parabl e: The ground of a

certain ri ch man yielded plentifully. And he thought within himself,saying, What shall I do, since I have no room to store my cro p s ? S ohe said, I will do this: I will pull down my barns and build gre ater,and there I will store all my crops and my goods. And I will say tomy soul, Soul, you have many goods laid up for many ye ars; takeyour ease; eat , drink , and be merry.

But God said to him, Fool! This night your soul will be re quiredof you; then whose will those things be wh ich you have prov ided?So is he who lays up tre asure for himself, and is not ri ch towa rdGod ( Luke 12:16-21).

28

Inheritances include money, landand other possessions passed fro mparents to children. Even thoughpeople make wills that leave detailedinstructions regarding the division of

their assets upon their death, g htingover inheritances is common. Some2,000 years ago Jesus Christ wasapproached by a man involved in thiskind of controversy (Luke 12:13-15).Jesus warned against covetousnessand then encouraged wealth towardGod (verse 21).

The Bible also describes this richnesstoward God as an inheritance that canbe ours. Paul taught the bre thren that

God wanted to give them an inheri-tance among all those who are sancti-ed (Acts 20:32).

The book of Hebrews speaks ofJesus Christ as the Mediator of the

new covenant . . . that those who arecalled may receive the promise of theeternal inheritance (Hebrews 9:15).

Peter also speaks of an inheri-tance incorruptible and undeled andthat does not fade away, re served inheaven for you (1 Peter 1:4). To learnhow you can receive this pre ciousinheritance, please write for our fre ebooklets The Gospel of the Kingdomand The Road to Eternal Life.

The Greatest Inheritance


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Teach Your Children About Finances

Teach Your Childre nAbout FinancesC hildren are a gift from the L ORD ; they are a real blessing(Psalm 127:3, Todays English Version). The New King Jamesversion calls them a heritage from the L ORD . What a wonderfulprivilege it is for parents to raise the next generation!

When God delive red Israel from slave ry in Egypt more than 3,000years ago , He was interested in the future of the adults and theirchildren. He wanted the Israelites to take root in their new land andprosper for many ge nerations. This is why He rep eatedly told theIsraelites to care f ully teach their ch ildren the things He had taughtthem (Deutero nomy 4:9-10, 40; 5:29; 6:2-9; 11:18-21).

When we learn to handle our money according to Gods instru c-tions, God expects us to share our know ledge with our ch ildren so

they,t oo, can be bl essed. With Gods pers pective in mind, let us con-sider some ways parents can teach their ch ildren to pro perly managetheir n ances.

How early can ch ildren begin the process of learning about money ?There is no set age, but ex perience indicates that as soon as they learnto use money they can learn fundamental principles about managing it.

Modern marketing effo rts, for ex ample, do not ex clude ch ildren.Childrens television programs often contain adve rtising aimeddirectly at yo ungsters. A dvertisers wo rk to cre ate desire for theirtoys and other pro ducts.


then, according to the biblical model, the husband should make thenal judgment.

Although couples will have to determine for themselves who han-dles wh ich nancial re sponsibilities, it is especially important for themto remember Gods instruction that they tre at each other with love andrespect (1 Peter 3:1-7). When these principles are employe d, a hus-band and wife can wo rk as a team to we ather nancial diffi cultiesinstead of turning on each other.

In summary, couples can gre atly reduce their conicts over moneyby planning when to have ch ildren and how to care for them, agre e-ing how to ap portion their re sources and learning to wo rk together toattain their nancial go als.

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18/25

Financial Black Holes

is cre dit, including its benets and potential pitfalls. Regre ttably, m anyadults have not yet learned these lessons (see Financial Black Holes,page 36). If you have learned to use credit wisely, t eaching your ch il-dren this info rmation will put them ye ars and perhaps thousands of dollars ahead in life.

It is also wise for older teens to learn how to plan for re tirement.Proverbs 13:22 says it is a good man who leaves an inheritance to hisgrandchildren. This means there must be some fo rethought and plan-ning about nances to provide for ones needs later in life.

Those who begin putting funds into a re tirement account early intheir wo rking career usually see their re tirement fund grow to a mu chlarger value than those of people who wait until their 40s (see ThePower of Compounding, p age 34).

Some adults have been shocked with an alarming wa ke-up callin their 40s or even 50s when they re alize they have not suffi cientlyplanned for their re tirement ye ars. Wo uldnt it be mu ch better to

have learned that lesson and been educated about the importanceof planning for that stage of life while still young?The best time to plan for re tirement is at an early age when inve st-

ments have more time to grow. Companies offe ring nancial pro ducts,such as life insurance and mutual funds, sometimes offer n ancialadvice and assistance to young people. Although it is beyond the scopeof this booklet to list these re sources, a few phone calls to some of these kinds of businesses can help those who wish to learn more.

Children are blessed when they have parents who love them andteach them how to manage their money. Proverbs 22:6 say s, Trainup a child in the way he should go , and when he is old he will not

depart from it. Ta ke this proverb to heart and teach your ch ildren theprinciples of money management. Yo u, and they, can be blessed byyour effo rts.


childs name. Depending on a pare nts ex pertise, older ch ildren can alsobe taught about other types of savings and investments such as money -market accounts, s tock s, bonds, mutual funds and precious metals.

Teens can learn how to eva luate and tra ck the value of these kindsof savings and assets. Th ey can also learn the value of compoundinginterest and learn to set aside funds for the inev itable emerge nciesthat occur in eve ryones life.

Another especially important area older ch ildren need to unders tand

34

Many people dont realize thepower of compounding and theeffect of time. Preparing for re tire-ment is best done early in life ratherthan later.

Consider the hypothetical case ofthree peopleAaron, Bob and Carl.Aaron begins to save for re tirementat age 20 and saves only $2,000 peryear for 10 years. Carl doesnt beginsaving for re tirement until age 40 andcontributes $2,000 each year until hereaches age 65. Bob begins saving atage 30 and continues adding $2,000

each year until age 65.Neither of the last two will have as

much at re tirement as Aaron, thanksto the power of compounding.

Assuming a growth rate of 8 per-

cent each year, as the chart belowshows, both Bob and Carl will con-tribute considerably more thanAaron, but will end up with fromabout $100,000 to $300,000 less atage 65and Aaron can stop con-tributing at age 30. The reason is thepower of compounding. It pays tobegin saving early.

The Power of Compounding

Example of Compounding of Savings at 8 Perc en t$600,000

$500,000

$400,000

$300,000

$200,000

$100,000

$0

Aaron begins savingat age 20, saves

$2,000 for 10 years(sets aside $20,000)

Bob begins savingat age 30, saves


Carl begins savingat age 40, saves



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Perhaps you have heard the humorous denition of a boat. It is ahole in the water into wh ich one pours money. This view re ects thef rustration that can arise over uncontrolled or unplanned expenses thatcan accompany ow nership of a boat .

Of cours e, m any pertinent examples could be used to descri beunwise drains on our nancial re sources. The prophet Hagga idescribed it as putting ones money in a bag with holes in it (Hagga i1:6). Along similar lines, a stronomers speak of bl ack holes in the uni-verse that suck up the mat ter, and even light, in their surro undingareas. In this ch apter we will consider some nancial bl ack holes thatcan undermine and sab otage our nancial planning.

Credit cardsOne of the gre atest nancial conveniences is credit cards. Besideseliminating the need for the inconvenience of carrying cash, c reditcards make it possible to buy goods and services at distant locat ionsvia phone and the Internet. If one pays off all cre dit-card ch arges eachmonth, there is no fee to the card holder. The service is paid fo rthrough fees assessed to merchants who accept the card in lieu of cash or a bank ch eck .

When one does not completely pay off the balance each month,howeve r, little plastic cards quick ly turn from love ly conve niences

into nancial bl ack holes. Some of the highest interest rates allowe dby law are assessed on balances that are not paid off but carried ove rf rom month to month.

Many people use their cards so fre quently they are actuallyspending credit rather than spending income. In the United Stat es

credit-card debt is the fa stest-growing portion of consumer deb t.Its no coincidence that bankru ptcy lings are growing alongsideconsumer deb t.

When people make only the minimum payment (often 2 perc entof the balance) each month, the cost of each item ch arged to acredit card almost doubles by the time the debt is paid off. In thelong run we are mu ch better off waiting until we have saved up thepurchase price of an item befo re buying it rather than nancing itwith a credit card.

The best way to use credit cards is to pay off the entire balanceevery month. For those who need to borrow money, other options

(such as mort gage s, home-equity loans and car loans) are often ava il-able with lower interest rates than those usually offe red thro ughcredit card s.

Late feesSome cre ditors impose late fees for bills that are not paid on time.

In the case of utilities, reconnection fees can be ch arged if serv icesare shut off because bills have not been paid. These kinds of fees canbe avoided simply by making sure bills are paid when due.

Eating out

Instead of prep aring and eating meals at home, m any peoplechoose to eat out. Growing nu mbers of re staurants are takingadvantage of this tre nd. Even gro cery stores are re cognizing andresponding to the desire for more convenience foods that re quirelittle prep aration.

Although the convenience is at tractive, e specially when both ahusband and wife wo rk outside the home, this practice almost alway sadds considerable expense to the food bu dget. Sometimes eating outis justied or a helpful ch ange of pace, but care should be taken tominimize the pra ctice.

Financial Black Holes 37 Managing Your Finances36


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The most economical way to make ones food bu dget stre tch thefarthest is to buy food in bulk and prep are it at home. This also go esfor taking lunches to wo rk instead of purchasing meals. Eating out isen joyable and sometimes a good decision when both husband andwife are tired from long days at wo rk , but a price must be paid fo rthis pleasure.

EntertainmentDoing things that are fun is an important part of life, and eve ry

budget should include some funds for this purp ose. Unch eckedspending in this are a, howeve r, can quick ly deva state even the mostcaref ully prep ared bu dget. Entertainment does not have to be ex pen-sive. With careful planning, e n joyable activities such as visitingpark s, hiking and attending free concerts can be incorp orated intoan entertainment bu dget.

Impulse buying

Although many other nancial bl ack holes could be identie d, acommon pro blem is impulse bu ying,wh ich is simply uncontro lledspending. When this hap pens, some people are tempted to say thatbudgeting does not wo rk for them or that a bu dget ruins their fun.Budgets, howeve r, a re simply plans for spending our money, and wealone choose how we will spend it.

Impulse buying is an important basis for many sales. A dvertisersunderstand that the desire for instant grat ication is a powerful inu-ence, and they often urge us to buy their products so we will fe elgood about ours elves. We may even be told that we deserve tohave their pro ducts.

Instead of making snap decisions, the Consumer Cre ditCounseling Service of Sacra mento, California, recommends settingspending limits we will not exceed without thinking about the deci-sion ove rnight. Nor should we use shopping as entertainment. Th isservice also suggests consumers go through a short list of questionsbefore making a purchase (see A Buying Self-Te st, page 39) .

Identif ying nancial black holesOne of the easiest ways to identify areas that drain our n ancial

resources is to look cl osely at the things we bu y. By ke eping re cords

of our ex penditures for one or more months and totaling them by cat-egory (housing, fo od, clothing, entertainment, etc.), we can see wh ichareas consume the most money. These are the areas we can thenexamine for ways to economize and manage our spending.

Wh at do we do when our bu dget is full of bl ack holes? Such asituation calls for immediate and decisive action.

In Case of EmergencyOccasionally eve ryone incurs unexpected expenses. Cars and

appliances break down and must be rep aired or rep laced. Medicalemergencies re quiring ex tra funds can stri ke without wa rning.

Financial Black Holes 39 Managing Your Finances38

Before committing to a purchase, give yourself this self-test to determ inewhether your purchase would be a wise decision.

1. Do I really need this?

2. Is the price re asonable?

3. Is this the best time of year to buy?

4. If this is a bargain, is it a current or suitable model?

5. If its on sale, is the price a true sale?

6. Am I sure no less-expensive item can be substituted?

7. Am I sure there are no major disadvantages?

8. If excessive in price, will it truly satisfy an inner need?

9. Have I comparison-shopped for price and quality?

10. Have I allowed for this item in my spending plan?

11. Do I know the sellers re putation?

12. Does the seller offer any special services with this item?

Scoring: 9-11 yes answers: Consider buying the item. 6-8 yes answers:Think again. Fewer t han 6: Forget it! (Consumer Credit Counseling Serv iceof Sacramento, California, www. cccssacto.org, Library of Helpful MoneyTips, Controlling Impulse Buying ).

A Buying Self-Test


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Although tempora ry situations can be cove red through sav ings,habitual ex cessive spending re quires special at tention.

What can we do when we nd ours elves in a pro longed n ancialcrisis? How does one plug up nancial bl ack holes and reve rse poormonetary decisions? Here are a few steps that can help re solve somelong-term nancial diffi culties.

The rst step for someone who wants to stru cture his life accord-ing to Gods instruction is to ask Him for wisdom in setting n ancialpriorities and for the self-discipline that will be needed to carry outa sensible plan of re covery. James 1:5 say s, If any of you lackswisdom, let him ask of God, who gives to all libera lly and withoutreproach, and it will be given to him.

When our spending exceeds income, common sense tells us of only two solutions to the pro blem. Fi rst, we must increase ourincome, or, s econd, decrease our spending. In some cases we maybe able to do things on the job that will increase our salary. Other

options include taking a tempora ry second job or starting an add i-tional part-time bu siness, but these options may bring unwanted sideeffects to a couple or fa mily.

If we cannot increase income, the altern ative is to cut expenses. Wecan do this by controlling the typical nancial bl ack holes mentionedin the previous ch apter and by care f ully analyzing each ex pense.Expenses that are necessitiessuch as fo od, clothing and housingcould possibly be cut back. Expenses for luxuri es, ones we can livewithout, are candidates for drastic reduction or eliminat ion.

Ideally, when facing a cash-ow pro blem, we should strive toincrease income and decrease expenses. Striving to incorp orate both

of these principles yields the fastest re sults.Avoiding bankruptcy

Some people facing nancial difficulty assume bankru ptcy is thesimple solution to their pro blem. Genera lly speaking, h oweve r, o neshould try to avoid it if at all possibl e.

Sometimes viable altern atives to ling bankru ptcy can be fo und.Timely commu nication with cre ditors can result in tempora rilylowered interest rates and payments. Sometimes consolidation loans,in wh ich all outstanding debts are lumped together for a single

41

monthly pay ment, can be helpful remedies if the interest rate is lowe rthan that of the other deb ts.

Additionally,c reditors will occasionally accept settlement plans inwhich they re ceive a perc entage of the balance due (usually after theaccount is past due) as payment in full. In such cases a creditor maydecide that partial payment is better than no pay ment.

In addition to studying personal money manage ment, one canoften nd nonpro t orga nizations such as the Consumer Cre ditCounseling Service ([800] 388-2227 in the United States) with freeor low -priced services to help nd altern atives to bankru ptcy andwork out n ancial-recovery plans.

When bankruptcy is the only opt ionSometimes people get so far in debt they may have no other ch oice

than to le bankru ptcy. This should be a last re sort, after all othermethods for resolving a nancial pro blem are ex hausted. Bankru ptcyhas a negat ive affect upon ones ability to obtain credit. Laws va ryf rom country to country. Ap propriate legal advice should be soughtif one chooses this course of action.

Although bankru ptcy can leave people feeling ashamed andembarrassed, we should understand that God re cognized there wo uldbe times when people made mistakes or encountered circ umstancesthat brought them to nancial ruin. Mistakes can be re ctied andlessons can be learned through all of life s ex periences.

In compassion, God gave the nation of ancient Israel some impor-tant principles designed to help those in nancial crisis. Th eseincluded not ch arging usury (Exodus 22:25) or looking disparagi ngly

on the poor (Exodus 23:3). Po rtions of elds and vineya rds we re tobe left for them to glean (Leviticus 19:10; 23:22). Israel was to takecare of its poor (Leviticus 25:35).

Moses explained these principles this way : If there is amongyou a poor man of your bre thren, within any of the gates in yo urland wh ich the L ORD your God is giving yo u, you shall not hard enyour heart nor shut your hand from your poor bro ther, but you shallopen your hand wide to him and willingly lend him sufficient fo rhis need, wh atever he needs. Bewa re lest there be a wicked thoughtin your heart , saying, The seventh ye ar, the year of re lease, is at

Managing Your Finances40


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Seeking Gods Blessings 43 Managing Your Finances42

hand,and your eye be evil against your poor brother and you givehim nothing, and he cry out to the L ORD against yo u, and it becomesin among you.

You shall sure ly give to him, and your heart should not be gri evedwhen you give to him, because for this thing the L ORD your God willbless you in all your wo rks and in all to wh ich you put your hand. Fo rthe poor will never cease from the land; there fore I command yo u,saying, You shall open your hand wide to your bro ther, to your poorand your needy, in your land ( Deuteronomy 15:7-11).

The same ch apter tells us that debts we re canceled eve ry seve nyears (ve rses 1-4), giving each person an opportunity to be freed of the bu rden of perpetual debt. God well understood that poor n ancialdecision-making and pove rty are perpetual pro blems and made prov i-sion for people to start afresh. Bankru ptcy may be an option to allowsomeone to start ove r.

Although times have ch anged since these instructions we re give n,

the principles of tre ating those in need with dignity and respect re main.

Seeking GodsBlessings

G od placed us on this planet (among other reasons) to be pro duc-tive,s how initiat ive and develop our gifts so we could support our-selves, our fa mily and others in need.

Diligently ap plying the fo regoing principles of economic we ll-being is essential for nancial success. Howeve r, to seek a successfuloutcome in our daily endeavo rs, we must also have Gods blessingsin our undert ak ings.

We should heed the wo rds of wise King Solomon: Trust in theLORD with all your heart , and lean not on your own understanding;in all your ways ack nowledge Him, and He shall direct your pat hs(Proverbs 3:5-6).

The Bible makes it possible for us to glean Gods thoughts on eve ry

major area of life. God is an ex pert on the human condition. He know swhat we lack , and He knows wh at we need. He knows we need Hishelp in making important monetary decisions and in ke eping ournancial houses in ord er.

Biblical guidanceAs we have seen, the Bible is full of sound advice about money

matters. It even cautions us not to be so concerned about them thatwe seri ously neglect other important aspects of our life. Our dep en-dence is to be on God and not on money. Where your tre asure is,


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Managing Your Finances44

warned Chri st, there your heart will be also ( Matthew 6:21). Is yo urheartand your tre asurefocused pri marily on things of this life,or is it focused on God in heave n?

The Scri ptures teach us not to set our heart on ri ches but to helppeople in ge nuine need and ge nerously support the wo rk of shari ngGods truth with others. Such pri orities are an important part of loving our neighbors as ours elves.

We should seek to live a balanced life, putting our nances intoproper pers pective. One of the ancients asked God: Give me nei-ther pove rty nor ri chesfeed me with the food allotted to me(Proverbs 30:8).

Using ou r resources properlyIn the preceding page s, we have seen that money of itself is neither

good nor evil. It is a tool we use throughout our lives to accomplishtasks and goals. The way we use our money is important to Godbecause it demonstrates our pri orities.

God sees whether we honor Him with the blessings He gives us,how we care for our families and how we tre at the poor. As ex citingas our physical life can be, it pales in comparison with the gift of everlasting life our Cre ator offe rs us (Romans 8:18).

God promises that obeying Him in this life has value for the pre s-ent and future (1 Ti mothy 4:8). May God bless you as you confo rmto His will.

W e all need t o hear goo d news occa-sionally. It h elps us through the dif f icu l-

ties of everyday life and gives us con dence to f ace

the f utu re. So why not receive it f ree of charg e?The Good News magazine wi ll give you hope f or an uncert ainfuture and show you the Bibles solutions for the crises we see inthe news and t he dif ficulti es you face in lif e. Subscribe t oday toreceive the following:

Six thought-provoking issues a year free as long asyou'd like.

Learn how the Bible provides guidance for every daychallenges and decisions.

Practical articles help you build strong marriages andfamilies.

Learn t o make sense of world news and events.

Learn what the fu ture holds for you and the entireworld.

Mail t he card included in this booklet or wri te to:The Good New s, Box 541027, Cincinnati, OH 45254-1027

All literature published by the United Church of God,an International Association, is provided to the pu blic free for the asking.

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Beyond t he troub led headlines of t oday,theres a bright f u tu re in st ore for you ,your fam ily and the w orld. Discover it,

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is so impor tant t o our relatio nship wi th God. The foundation of right human behavior is the Ten Command-

ments. But why are they so important? What makes them any diff er-ent f rom any ot her rules or gui delines? Do t hey have a deepermeaning t hat most people miss? Be sure to r equest your f ree copyof The Ten Commandments .

Is this the only time for salvation? Are those who are not tru eChristians desti ned f or eternal p unishment ? Does God have a ti metablefor w orking wit h all of humanity? Call or write f or the free bookletsWhat Happens After Death? and Gods Holy Day Plan: The Promise ofHope for All Mankind to discover t he wonderful trut h about Godsplan for humanity.

What i s the tru e gospel Jesus Christ taug ht and commanded HisChurch to proclaim to the world? Is it possible that most of Christianity

accepts and t eaches a diff erent gospel from the one Jesus Christt aught ? Request you r f ree copy o f The Gospel of the Kingdo m to d is-cover the answers.

The Unit ed Church of God, an Int ernation al Association, draw s itsbeliefs and practices fro m th e Scriptures. If you w ould li ke to learnmore about our beliefs and their biblical foundat ion, youll nd themsummarized in the booklet Fundament al Beliefs of the Unit ed Churc hof God . Well be gl ad to send you a f ree copy.

All literature published by the United Church of God,an International Association, is provided to the public free for the asking.

Does the Bible offer practical help for dealing with the commonchallenges and questions of life? Is it, as it claims to be, a practi-cal, timel ess book off ering di vine guidance from ou r Cre ator?

The United Church of God, an Internati onal A ssociation, h as pro ducedmany clear, easy-to-read booklets on basic topics to help you under-stand w hat the Bible t eaches. You need t o di scover f or you rself w hatthe Bible really says. And dont take our word for itlook it up in thepages of your own Bible and prove for yourself what it teaches. A llbooklet s are yours free fo r t he asking w hen you contact o ne of ou roffices. As always, there is never any cost or obligation, and no onewi ll call on you.

The Bible is th e found ation f or Christi anity. But i s it really theinspired Wo rd of God? Can you know fo r sure? How can you und er-stand the Bible? Be sure to request Is the Bible Tru e? and How t o

Understand the Bible , which address these vital questions. What is the purpose of h uman life? Are we here for a re ason?Does the Bible provide answers for these questions? What does theBible mean w hen it talks about repentance and conversion? Requestyour free copy of t he booklets What Is Your Destiny? and The Road toEternal Life to discover the answers.

To und erstand wh ich day is th e bibli cal Sabbat hth e day setaside in the Bible for regular weekly rest and worship serv ices wr ite or call for your f ree copy of Sunset to Sunset: Gods Sabbat hRest . Youll also learn why God wants His people to assembletoget her and w hy this most neglected of the Ten Commandments

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MAILING ADDRESSESUnited States: United Church of God, an International Association

P.O. Box 541027, Cincinnati, OH 45254-1027, U.S.A.Phone: (513) 576-9796 Fax: (513) 576-9795

Web site address: http://www. ucg.org

Australia: United Church of GodAustraliaGPO Box 535, Brisbane, Qld. 4001, Australia

Phone: 07 55 202 111 Free call: 1800 356 202Fax: 07 55 202 122

Web site address: http://www. ucg.org.auE-mail: [email protected] .au

Bahamas: United Church of GodP.O. Box N8873, Nassau, Bahamas

Phone: (242) 324-3169 Fax: (242) 364-5566

British Isles: United Church of GodP.O. Box 4052, Milton Keynes, Bucks, MK13 7ZF, England

Phone: 0181-386-8467 Fax: 01257-453978

Canada: United Church of GodCanadaBox 144, Station D, Etobicoke, ON M9A 4X1, Canada

Phone: (416) 231-9379, (800) 338-7779Fax: (416) 231-8238 Web site address: http://www. ucg.ca

French-speaking areas: United Church of GodP.O. Box 541027, Cincinnati, OH 45254-1027, U.S.A.

Phone: (513) 576-9796 Fax: (513) 576-9795

Germany: Ve reinte Kirche Gottes/Gute NachrichtenPostfach 30 15 09, D-53195 Bonn, Germ anyPhone: 0228-9454636 Fax: 0228-9454637

Italy: La Buona Notizia, Chiesa di Dio UnitaCasella Postale 187, 24100 Bergamo, Italy.

Phone: 0039-035583474 Fax: 0039-035582140Web site address: http://www. labuonanotizia.org

New Zealand: United Church of GodP.O. Box 22, Auckland 1030, New Zealand

South Africa: United Church of GodP.O. Box 4345, 2125 Randburg, South AfricaPhone: 011 886-4650 Fax: 011 886-7610Web site address: http://www. ucg.org.za

Spanish-speaking areas: United Church of GodP.O. Box 458, Big Sandy, TX 75755, U.S.A.

Phone: (903) 636-4928

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