The Best Christian Financial Advice, Summarized in 4 Principles

[DerrikCFP]

The value of biblical wisdom is that it is transcendent. It does not need to be changed when new tax laws are passed. It stays the same with each new administration. It can be relied upon by every generation, regardless of income or net worth.

At the core of all wise christian financial advice are four principles. If you integrate them into your life, you will find financial freedom.

Principle 1: Spend less than you earn.

“In the house of the wise are stores of choice food and oil, but a foolish man devours all he has” Proverbs 21:20.

Financial success and peace are based on having financial margin, a positive difference between what we spend and what we earn.

Principle 2: Avoid the use of debt

“The rich rule over the poor and the borrow is servant to the lender” Proverbs 22:7.

We can only serve one master. If our servitude has been committed to a lender, we are not financially and spiritually free to serve Christ with all of our heart.

Principle 3: Build reserves

“Go to the ant, you sluggard; consider its ways and be wise! It has no commander,
no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest” Proverbs 6:6-8.

Financial reserves give us the flexibility to respond to the unknown. According to the passage above, they do not represent a lack of faith, but a prudent response to planning for an unknown future.

Principle 4: Set long term goals

“I press on toward the goal to win the prize for which God has called me heavenward in Christ Jesus” Philippians 3:14.

The first three principles are means to the end of accomplishing the goals that God has placed in our heart. Effectively funneling money toward what matters most requires that we avoid debt in order to live within our means and develop a financial margin…a margin that is first used to provide a reserve and then toward long term financial goals.

What conventional financial wisdom in the media goes against these four biblical principles? What are the results in the long term when we violate them?


Derrik Hubbard, CFP
Read the Christian Financial Planning Blog at www.yourfinancialpurpose.com/blog

[Trent4God]

Your site sounds incredibly close to where I bought life insurance. http://YourLifeSolution.com, any affiliation? It's a long shot but your writing sounds similar

[DerrikCFP]

Nope, no affiliation

[Rodrigz]

Dear fellow Christian:

While avoiding debt is ideal and bible-based, as you know, it’s a challenge to integrate financial principles with christian ethics. Your first three references, all from Proverbs (Old Testament) are powerful. However, in modern society, Finance requires we use revolving credit which we manage to obtain FICO scores constituting a credit history.

From a financial view, our credit history influences investments such as the purchase of a home or car. We can still honor biblical principles and spend in moderation but to “avoid the use of debt” altogether does not sound practical. Solomon wrote Proverbs and as we know, God had made him a prosperous man. I don’t think he worried much about debt.

The Old Testament also speaks of men who led by example like Abraham, a fair business man who always paid what he owed, and Joseph, who managed to build abundant reserves right before a famine.

Your fourth reference, from Philippians, is one of my favorite verses from the New Testament. Paul did renounce to material things in pursuit of Christ and spoke of pressing on toward the goal to win a [spiritual] prize. Paul also said in Romans 13:8, “Let no debt remain outstanding, except the continuing debt to love one another ...” It seems even back then debt could not be avoided. The important thing is that we pay our debts.

Thank you for your financial thoughts as they relate to our faith.