Organizing your Finances

ORGANIZING YOUR FINANCES

By Mike McLoughlin,
Youth With A Mission, Marketplace Mission
Visit the Scruples Small Business Forum at www.scruples.net for more information.

PART 1 - Principles In Biblical Stewardship

Introduction:

John Wimber's Testimony: "I am a fool for Jesus, whose fool are you?"

When it comes to finances are we a "fool for Jesus" or are we a "fool for finances?"

I know, I've been there and I am on the way back.

First Principles in Biblical Stewardship

(Most Scripture is from New International version)

I. God owns it all.

'The silver is mine and the gold is mine,' declares the LORD Almighty. -- Haggai 2:8
I have no need of a bull from your stall or of goats from your pens, for every animal of the forest is mine, and the cattle on a thousand hills. -- Psalms 50:9-10

A. He created it.

By faith we understand that the universe was formed at God's command, so that what is seen was not made out of what was visible. -- Hebrews 11:3

B. He redeemed it.

Do you not know that your body is a temple of the Holy Spirit, who is in you, whom you have received from God? You are not your own you were bought at a price. Therefore honor God with your body. -- 1 Corinthians 6:19-20

Title Deed Illustration

II. God makes it happen not you.

But remember the LORD your God, for it is he who gives you the ability to produce wealth, and so confirms his covenant, which he swore to your forefathers, as it is today. -- Deuteronomy 8:18
For who makes you different from anyone else? What do you have that you did not receive? And if you did receive it, why do you boast as though you did not? -- 1 Corinthians 4:7
Look at the birds of the air they do not sow or reap or store away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they? -- Matthew 6:26

Why go into business? Standard answer: so I can make money!
Stop worrying. Have you ever seen a worried bird?
Yes, work hard but trust God for the results.

III. God trusts it to the faithful.

"His master replied, 'Well done, good and faithful servant! You have been faithful with a few things I will put you in charge of many things. Come and share your master's happiness!' -- Matthew 25:21
Moreover it is required in stewards that one be found faithful. -- 1 Corinthians 4:2

We are stewards not owners of God's resources.
Now that we know what business we are in, how is business?

IV. God will hold us accountable in the end.

"Then the man who had received the one talent came. 'Master,' he said, 'I knew that you are a hard man, harvesting where you have not sown and gathering where you have not scattered seed. So I was afraid and went out and hid your talent in the ground. See, here is what belongs to you.' "His master replied, 'You wicked, lazy servant! So you knew that I harvest where I have not sown and gather where I have not scattered seed? Well then, you should have put my money on deposit with the bankers, so that when I returned I would have received it back with interest. "'Take the talent from him and give it to the one who has the ten talents. For everyone who has will be given more, and he will have an abundance. Whoever does not have, even what he has will be taken from him. And throw that worthless servant outside, into the darkness, where there will be weeping and gnashing of teeth.' -- Matthew 25:24-30

Notice it was the servant that got one talent that screwed up, not the one he gave five to.

V. God wants us to earn it His way.

A. No dishonesty

The wicked borrow and do not repay, but the righteous give generously -- Psalms 37:21

*Over use of credit leading to bankruptcy

The LORD abhors dishonest scales, but accurate weights are his delight. -- Proverbs 11:1

*Overcharging clients for the work performed

saying, "When will the New Moon be over that we may sell grain, and the Sabbath be ended that we may market wheat?"-- skimping the measure, boosting the price and cheating with dishonest scales, -- Amos 8:5

False product promises e.g. NSA Water Purification Network Marketing
paid for 8 hours only worked 5 hours
charging GST & not remitting it.
padding expense accounts
The List goes on!

B. Honestly

Dishonest money dwindles away, but he who gathers money little by little makes it grow. -- Proverbs 13:11
An inheritance quickly gained at the beginning will not be blessed at the end. -- Proverbs 20:21

By Working:

Then I realized that it is good and proper for a man to eat and drink, and to find satisfaction in his toilsome labor under the sun during the few days of life God has given him--for this is his lot. Moreover, when God gives any man wealth and possessions, and enables him to enjoy them, to accept his lot and be happy in his work--this is a gift of God. -- Ecclesiastes 5:18-19
He who works his land will have abundant food, but the one who chases fantasies will have his fill of poverty. -- Proverbs 28:19

By Business:

Make it your ambition to lead a quiet life, to mind your own business and to work with your hands, just as we told you, -- 1 Thessalonians 4:11

By Saving:

In the house of the wise are stores of choice food and oil, but a foolish man devours all he has. -- Proverbs 21:20
Ants are creatures of little strength, yet they store up their food in the summer -- Proverbs 30:25

By Planning:

Any enterprise is built by wise planning, becomes strong through common sense, and profits wonderfully by keeping abreast of the facts. -- Proverbs 24:3

VI. God wants us to spend it wisely

A. Know where you stand.

Be sure you know the condition of your flocks, give careful attention to your herds -- Proverbs 27:23

B. Decide how much is enough.

I know what it is to be in need, and I know what it is to have plenty. I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want. -- Philippians 4:12

C. Plan & Control your spending.

A prudent man sees danger and takes refuge, but the simple keep going and suffer for it. -- Proverbs 22:3
But the fruit of the Spirit is love, joy, peace, patience, kindness, goodness, faithfulness, gentleness and self-control. Against such things there is no law. -- Galatians 5:22-23

D. Decide on right Priorities. Some suggested right priorities:

Finish your outdoor work and get your fields ready; after that, build your house -- Proverbs 24:27.

i. Family:

But anyone who won't care for his own relatives when they need help, especially those living in his own family, has no right to say he is a Christian. Such a person is worse than the heathen. -- 1 Timothy 5:8

ii. Pay your debts:

When she told the prophet what had happened, he said to her, "Go and sell the oil and pay your debt, and there will be enough money left for you and your sons to live on!" -- 2 Kings 4:7

iii. Provide for those in need.

But if someone who is supposed to be a Christian has money enough to live well, and sees a brother in need, and won't help him--how can God's love be within him ? -- 1 John 3:17

VII. God wants us to give it generously.

A. OT Pattern:

1. Pay your Tithes: (Obligations).

First ten percent to Levites. (Leviticus 27:30)
Second ten percent to provide for the festivals. (Deut. 12)
Third ten percent every three years for the poor. (Deut 14:28)

B. Offerings: (Freewill)

For building the Tabernacle/Temple (Exo 35:39) (Ezra 1:4)
For general giving (2 Chron 31:14)
For helping those in need. (Est. 9:22)

OT Principle:

Obligations were a requirement of the law
Giving done willingly from the heart

NT Pattern:

A. Pay your Obligations

Taxes (Matt. 17:24-27)
Debts (Rom 13:8)
Giving Commitments (2 Cor 9:5)

Note: At New Life Members commit to give 10 percent of their income. You make that obligation when you sign up as members.

B. Give Freely & Generously from the Heart

Give to the one who asks you, and do not turn away from the one who wants to borrow from you. -- Matthew 5:42.

Giving is not an option in Christ’s Kingdom. (It is material as well as time)

Remember this: Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously. -- 2 Cor 9:6 NIV

Giving is to be generous.

Each man should give what he has decided in his heart to give, not reluctantly or under compulsion, for God loves a cheerful giver. -- 2 Corinthians 9:7

Giving is to be done cheerfully whatever you decide .

Now about the collection for God's people: Do what I told the Galatian churches to do. On the first day of every week, each one of you should set aside a sum of money in keeping with his income, saving it up, so that when I come no collections will have to be made. – 2 Corinthians 16:1-2

Planned & According to your income.

Out of the most severe trial, their overflowing joy and their extreme poverty welled up in rich generosity. For I testify that they gave as much as they were able, and even beyond their ability. Entirely on their own, 2 Corinthians 8:2-3
Jesus sat down opposite the place where the offerings were put and watched the crowd putting their money into the temple treasury. Many rich people threw in large amounts. But a poor widow came and put in two very small copper coins, worth only a fraction of a penny. Calling his disciples to him, Jesus said, "I tell you the truth, this poor widow has put more into the treasury than all the others. They all gave out of their wealth; but she, out of her poverty, put in everything--all she had to live on." -- Mark 12:41-44

How much? Give until it hurts.

NT Principle:

Requirements of the Law all met in Christ. Giving is not under the law but is still a matter of obedience.
Still have some obligations you must meet (pertaining to Government, to the church or to those you have freely entered into.)
Otherwise, you are free to give wholeheartedly at any amount as God has prospered you.

The Biblical Principle

Honor the LORD with your wealth, with the firstfruits of all your crops then your barns will be filled to overflowing, and your vats will brim over with new wine. -- Proverbs 3:9-10

If you value God in your life you will be giving as a natural expression of your love and devotion to Him.

Do not offer to the LORD the blind, the injured or the maimed, or anything with warts or festering or running sores. Do not place any of these on the altar as an offering made to the LORD by fire. -- Leviticus 22:22

Are you giving God what is first or what is left over?

Conclusion: Treasure in Heaven & A Crown that will last.

When Jesus heard this, he said to him, "You still lack one thing. Sell everything you have and give to the poor, and you will have treasure in heaven. Then come, follow me." -- Luke 18:22
Everyone who competes in the games goes into strict training. They do it to get a crown that will not last but we do it to get a crown that will last forever. -- 1 Corinthians 9:25

Q. What shall we do with our treasure in heaven, with our crown?

A. Worship Christ.

Whenever the living creatures give glory, honor and thanks to him who sits on the throne and who lives for ever and ever, the twenty-four elders fall down before him who sits on the throne, and worship him who lives for ever and ever. They lay their crowns before the throne and say: -- Revelation 4:9-10

Bibliography for Part I

Bickle, Mike. Experiencing Power Encounters in Finances. 2 Part Tape Series, Kansas City Fellowship, 1997.

Burkett, Larry. What the Bible has to say about money. Brentwood, TN, Wolgemuth & Hyatt, 1989.

___________. The Complete Guide to Managing Your Money. NewYork, Inspirational Press, 1993.

Campbell, Wesley. Wisdom For Living Series #7, Honoring God with our First Fruits. Tape Series from Proverbs. New Life Vineyard Fellowship, 1994

Cunningham. Loren. Daring to Live on the Edge. Seattle, YWAM Publishing, 1991.

MacArthur, Jr., John F. Giving God’s Way. Wheaton, Tyndale Publishers, 1978.

Orientation Manual, New Life Vineyard Fellowship. 1997.

Pitts, Earl. Biblical Basis for Personal Finances. Sunland, Ca. YWAM Publishing, 1986.

Part 2 - Practical Applications in Biblical Stewardship

Introduction & Recap of Part 1

The Principles of Biblical Stewardship

God owns it all.
God makes it happen not us.
God trusts it to the Faithful.
God will hold us accountable in the end

God wants us to earn it His way..
God wants us to spend it wisely.
God wants us to give it generously.

The Trust --- Life Capital: All that we are and have (including finances.)

Matthew 25:14-30: Well Done, Good & Faithful Steward!

The Contrast: Faithful Steward verses Unfaithful Steward

Moreover it is required in stewards that one be found faithful. -- 1 Corinthians 4:2

Practicing the Principles of Biblical Stewardship

I. Take Stock of your Life Capital

Teach us to number our days aright, that we may gain a heart of wisdom. (Psalm 90:12 NIV)

Keep the end in mind.

"But God said to him, 'You fool! This very night your life will be demanded from you. Then who will get what you have prepared for yourself?' (Luke 12:20 NIV)

If God demanded an accounting of your life this night, what would be your fate?

Practical Application: Organizing Your Finances must be done in the context of Organizing You Life!

Life Vision Statement
What is the vision?
What are your roles?
What are your core values?
What are your goals?

Inventory of Skills, Abilities, Knowledge, Character Attributes/Weaknesses & Spiritual Gifting
What are your God given abilities?
What life skills have you acquired?
What education do you have?
What are your Character strengths & weaknesses
What is your Spiritual Gifting?

Financial & Legal Inventory
What are your material assets?
What are your material liabilities?
What is your bottom line net worth?
Do you have a Will?
Do you have Life Insurance?
Do you have Disability Insurance?

II. Put your Life Capital to Work: Sow your Seed.

I tell you the truth, unless a kernel of wheat falls to the ground and dies, it remains only a single seed. But if it dies, it produces many seeds. The man who loves his life will lose it, while the man who hates his life in this world will keep it for eternal life. (John 12:24 NIV)

Sow your life to the glory of God and you will reap eternal results.

Practical Application:

A Life Plan:
How does your Life Vision Statement translate into practical goals?
Do you have a calendar of when you will do what?
What tasks do you have to undertake to accomplish these goals?
How will you know when you have achieved your goals?
Goals must be SMART: Specific; Measurable; Achievable; Realistic; Time Limited.

A Career Plan: What are your Employment Goals?
Do you have a plan to advance in your present employment?
What experience do you need for advancement?
What education do you need for advancement?

A Financial Plan: What are your Financial Goals?
Annual Income
Debt Reduction
Tax Reduction
Home Equity
Investments for Growth
Charitable Giving
Retirement Savings
Emergency Savings
Children’s Educational Savings
Inheritance
A Family Budget: How are you going to implement your Financial Plan?
What are your expenses?
What is your revenue?
How are you doing?
Have you decided how much is enough?
What are your plans for the excess?
Are you saving or getting further behind?

III. Finish Well: Well Done! Good & Faithful Servant!

"His master replied, 'Well done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things. Come and share your master's happiness!' (Matthew 25:21 NIV)

Faithfulness (even in the small matters) will be rewarded with praise and will result in fruitfulness & joy.

"His master replied, 'You wicked, lazy servant! So you knew that I harvest where I have not sown and gather where I have not scattered seed? Well then, you should have put my money on deposit with the bankers, so that when I returned I would have received it back with interest. "'Take the talent from him and give it to the one who has the ten talents. For everyone who has will be given more, and he will have an abundance. Whoever does not have, even what he has will be taken from him. And throw that worthless servant outside, into the darkness, where there will be weeping and gnashing of teeth.' (Matthew 25:26-30 NIV)

Wickedness (Sin) & Slothfulness (Unbelief) are evidence for unfaithfulness.
Unfaithfulness will cause loss, spiritually as well as financially.
Unfaithfulness will be rewarded with condemnation and will result in sorrow and regret.

Practical Application:

Focus: What is the one thing you can do well?
Faith: How intimate is your relationship with Christ?
Friendship: Who can you be accountable to?

Discipline: Do you have the discipline to do what is important and to finish the job?
Learner: Do you have a positive learning attitude?

Conclusion: Finish Faithfully

I have fought the good fight, I have finished the race, I have kept the faith. (2 Timothy 4:7 NIV)

It’s not a matter of whether you win or loose, it is how you play the game – faithfully.
The Race by D. H. Goldberg.

Bibliography for Part II

Bolles, Richard Nelson. What Colour is You Parachute? A Practical Guide for Job Hunters & Career-Changers. 10 Speed Press, Berkley, CA., 1989.

Gothard, Bill. Institute of Basic Youth Conflicts: Financial Freedom Volume. Institute in Basic Youth Conflicts, 1983

Stanley, Paul D. and Clinton, Robert J. Connecting, The Mentoring Relationships you need to Succeed in Life. NAVPRESS, Colorado Springs, CO., 1992

Appendices

1. Larry Burkett’s Resources for Financial Planning

2. Tax Saving Tips and I Wanna Save Tax Example

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