BIBLICAL FINANCIAL PRINCIPLES
Are you financially free or in bondage?
The Master or the MasterCard®?
51% of African Americans are “personally struggling with finances” (Barna, 2001).
What do we commit to God ?
There are two masters—Luke 16:9-13
Honestly, do you want to be rich?
Are we trying to build heaven on earth?
The “prosperity gospel” preaches materialism and greed in the name of super-spirituality.
Material riches are not to be our goal, but things material are not evil in themselves. The good God created very good things out of matter—stars and people and butterflies and whales (Gen. 1:31).
God blessed Abraham, Job, David, Solomon, Hezekiah, etc. with much wealth. (Gen. 24:35; Job 1:3; I Chron. 29:3-5; 2 Chron. 1:12; 2 Chron. 32:27)
Prosperity is:
Prosperity is:
If you go for the crown and the Lord
If your security is in wealth, you will never have enough wealth to be fully secure. A man who has given away over 11 million dollars freely admits this, since wealth is quickly lost.
Are you content right now ? 1 Tim. 6:6
Life = possessions? Luke 12:15
Advertisements-- $850 @ American in 2000
YOU ? THE BANK ? GOD ?
Should a wife or mother work outside the home?
If a mother of young children works to increase the standard of living, she may gain little net increase.
The Institute for Social and Economic Research (British) found that “Married men earn more than single men, but only if their wife stays home—and does all the chores.”
55% of mothers with children under 1 worked or were looking for work in 2000, down from 66% in 1998. (USA Today, Stephanie Armour, “More moms make kids their career of choice” 3-12-02)
Should a Christian tithe because mandated in the Old Covenant? (Gal. 3:10; James 2:10; Heb. 8:8-13)
Christians are to give an unspecified percentage of our increase to God, but we give proportionately to our receiving.
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Can we first give to God ? (Rom. 11:35-36)
Don’t give due to being pressured (2 Cor. 9:7) via phone, mail, or solicitations from friends. Ask for time to pray for guidance. Many ministries use the most effective marketing techniques to generate income. Because someone found you does not mean that you are to give. Some have very high overhead (fireman’s charity concert).
Guidelines for giving outside the church
1. Giving little or nothing. Among Baby-busters (18-35), only half gave anything to the church in 2002.1
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If you missed a paycheck, you’d qualify for federal disaster aid.
You skimp on groceries and work clothes.
Dollars stick to you like Superglue® when you have the chance to give.
The Problem:
The Problem:
The Problem:
The Problem:
The Bible discourages debt (Rom. 13:8; Prov. 22:7; Dt. 28:44), but it isn’t sin (Matt. 5:42; Dt. 23:20)
Our consumer debt (debt other than for our home, but including home equity debt), is generally an excellent indicator of our level of discontent.
You must be serious about it. As Larry Burkett said, getting into debt is fun, but getting out of debt isn’t. It will likely take years.
If you have cable, or a cell phone, cut them off. Buy out your contract if necessary. Stop eating out. Tell your family that you won’t be able to give gifts as you would like to do, until you’re back on your feet.
You must go on a strict budget.
You are one in God’s sight (Matt. 19:5). Don’t let money divide you.
If the man directs the inheritance from his family, the wife, in fairness, should be able to direct the assets of her family, under the final authority of the husband.
But have one person balance the books and reconcile the statements.
If you cannot trust you prospective mate with your money, you shouldn’t marry that person. Faithfulness in money is a small thing (Luke 16:10-11). Being bound for life to someone is a heavy matter.
Save money/pursue investments:
Currently, if you were born in 1960 or later, you will not be eligible for full Social Security benefits until you’re 67.
23% of all workers are very willing to cut back on current spending to save for retirement
Reasons not to save:
“I have too much debt to be able to save.”
I can’t budget.
Saving
The Spirit can put to death the desires of the flesh (Rom. 8:13).
Know why you are saving.
To make it harder to “raid” your savings, make it harder to access.
Establish a “ladder” of savings.
Social Security is solvent only until 20411. Expenses will exceed income by 2017. Today 3.3 workers contribute per 1 retiree—it will be 2.2 by 2030.
The earlier you save and invest the better. If you start investing $2,000 annually at 8% in an IRA at 25, you will have $606,487 at 65. If you delay until 35, you’ll have only $266,427, a loss of $340,0601.
The only mention of retirement is at Numbers 8:25-26a, where priests were to retire at age 50, probably due to physical depletion (see Eccles. 12).
God’s plans never fail (Is. 14:27; Ps. 33:11), so we need to try to understand God’s will (Eph. 5:17; Jer. 9:23-24).
From a false assumption
Here is a list of the nations with the highest percentage of consumers who have no spare cash: 1—America (22%) 1—Portugal (22%) 3—Canada (19%) 4—United Kingdom (17%) 5—France (16%) 6—Netherlands (15%) ACNielson Online Consumer Confidence Survey—Global Survey, 1/11/2005
1. Pray for wisdom (James 1:5) and for self-control (Galatians 5:23). Habitual overspending is a spiritual issue.
4. At month’s end, TOTAL expenses in each category and compare with target figures, and adjust for next month, if needed.
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Spending over 40% of net spendable income (gross income, less taxes and giving) for housing & utilities
High debt load and failure to even list and total all debt Tip: debt list at www.rmni.org/financial/debt_list.pdf
Typical Budget Problems -3
How do Americans try to balance their budgets?
At year’s end, total all expenses for each category and divide by the number of months included, to refine your budget figures.
Expect UNEXPECTED expenses. Satan will try to discourage you. This is the reason for an emergency fund. The budget may take at least 6 months to begin to work smoothly.
FINANCIAL STATEMENT
To find out how to join a 10-week small group Crown Ministries financial accountability group, call 800-722-1976.
Is consumer debt (non-mortgage) paid? We should not tell creditors to wait for their money (Prov. 3:27-28).
The best investment is in God’s Kingdom. The return is guaranteed and nothing can diminish the principal (Luke 12:33).
Solomon, of incredible wealth, counseled to be vigilant with the wealth we have (Prov. 27:23-27).
Spread risk (Eccles. 11:2, 6).
Own your home debt-free—a retirement foundation.
Invest in areas you understand (Larry Burkett). Gain information.
Sound Mind Investing Newsletter: www.SoundMindInvesting.com
Index funds match indexes—such as the S&P 500 (500 biggest companies1), and the Russell 2000 (small companies).
Risk increases as company size decreases. Having some stock in each (large, mid, small cap) category is good diversification.
“Sector” funds invest in specific areas, such as technology, real estate, energy, pharmaceuticals, etc. Risk increases as the breadth of investment decreases.
You can purchase stocks through discount brokers, such as Sharebuilder, Ameritrade or Datek, or through brokers offering investment advice.
Company 401-K’s and 403-B’s (for non-profits) offer tax-free accumulation of any earnings and shelter current income.
www.quicken.com/retirement/planner
Legal information www.nolo.com
Will you spend it upon yourself and your family? Are you a bucket or a funnel (L. Burkett). Will you give at least a tithe of your income to the work of God? Or will more money lead you away from God (Matt. 11:14)?
As of February 2006, African Americans had an annual buying power of 762 billion dollars (expected to rise to 981 billion by 2010). “The US African American Market” MarketResearch.com http://www.allheadlinenews.com/articles/7002523834 accessed 1/8/07
Will the church spend it upon its own people, upon African Americans, and ignore the global Kingdom of God?
The number of unevangelized people by mid-2007 is 1,850,402,000, which is 28% of the global population. As of mid-2007, there are 4,420,319,000 non-Christians on the planet. Of these, Muslims total 1,359,745,000, Hindus total 888,300,000 and Buddhists total 382,482,000. Muslims and Hindus both have a higher growth rate than the general Christian population, due to higher birth rates.
Ghana sends 500 missionaries per year. Her population is 22.1 million and her Gross National Income is 10 billion. African Americans spent 10.7 billion on household furnishings and equipment in 2004. Nigeria sends 2500 missionaries per year and has a Gross National Income of 74.2 billion dollars. African Americans spent this much on vehicles, insurance, clothing and gifts in 2004. Sources: The World Bank: http://devdata.worldbank.org/external/CPProfile.asp?PTYPE=CP&CCODE=GHA
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One traditional church in Chattanooga with a budget of $120,000 spent .4 % on evangelistic home missions (to blacks).
Perspective:
Since the early 1980s, Black income has been rising. African Americans finally have an opportunity to achieve the American Dream, to have “a piece of the rock.”