Anchors in the Storm

Wednesday, October 1st, 2008

“The grass withers and the flowers fall, but the word of our God stands forever.” – Isaiah 40:7

(Note: I was going to conclude our five-part series on getting out of debt this month. However, with the current state of the economy I thought we could all use a refresher on the timeless biblical principles of money. I’ll finish the debt series next month.)

With so much economic uncertainty swirling about, now more than ever we need the reassurance and guidance of God’s eternal Word. In order to cope with these tough times, consider the following timeless principles and meditate on the highlighted passages of Scripture.

Go to God. If the markets are weighing on your mind, turn to God for comfort. You might think your concerns are too small to bring them to God. They are not. The God of the universe cares for you.

Go to others. This is not the best time to hang out with those who are checking their 401(k) balances every 30 minutes (then again, maybe you could help them). However, look for friends who are riding out the madness of the markets with a sense of calm, and spend some time with them.

Count on God’s promises. Read Matthew 6:25-34. And then read it again. God knows your needs and he promises to provide for you.

Take Action. God’s Word is not just for contemplation. It is designed to spur us to action. Here are some of the best biblically directed money moves you can make.

Develop a plan. The Bible does not say that the hopes and wishes of the dreamers lead to profit. It says the plans of the diligent do so. If you’re not currently managing your day-to-day spending with a plan, you’ll find a simple guide to getting started here.

Give generously. With all the belt-tightening articles flying around the Internet, you might think now’s the time to ease back on your generosity. It isn’t. The Bible teaches us that we will always have enough to give generously.

Save consistently. Among the many biblical principles highlighted by a tough economy is the importance of having some money in reserve. Build an emergency fund totaling one month’s worth of living expenses in a bank or credit union savings account, pay off consumer debt, build your emergency fund up to six month’s worth of living expenses, and then start saving for the long-term.

Spend wisely. Be proactive in managing your day-to-day spending, looking for the most effective use of money in each spending category. A cash flow plan is the essential tool for the trustworthy use of money.

Avoid consumer debt. Those who do not carry a balance on their credit cards from month to month and do not finance vehicles live with an unusual amount of financial freedom.

Diversify. Common mistakes investors make are to be too conservative or too aggressive. While this verse is not specifically about investing, the principle of diversification is applicable to our investments.

Be patient. When times get tough it’s tempting to bail out of the market. But as was pointed out earlier, the Bible warns against making hasty decisions.

Use wise counselors. The Bible teaches us the importance of using trusted advisors. You can find a professional financial advisor who has additional training in biblical principles of money management through Kingdom Advisors.

These are just a handful of the many money related principles found throughout God’s Word. People who practice such principles will be the ones best able to weather even the worst financial storms.